Democrats Are Launching A Legal Fight To Save Obamacare's Subsidy Payments


A coalition of US states will file a new lawsuit challenging President Donald Trump's plan to end Obamacare subsidies to health insurers that help low-income people pay out-of-pocket medical expenses, a source in the NY attorney general's Office said on Friday. Becerra and other Democratic state attorneys general had intervened in that case, which is before the US Court of Appeals for the DC Circuit, to pick up the defense of the subsidies if the Trump administration chose to withdraw.

When asked today if he would sign on to the suit, Michigan Attorney General Bill Schuette said "no".

California Attorney General Xavier Becerra said Friday he will sue the Trump administration for halting billions of dollars in federal payments to health insurers that help low-income Americans afford health care under the Affordable Care Act.

New Mexico Health Connections is raising rates by an average of 50 percent next year, in part due to the expected loss of subsidy payments, which it relies on to reduce out-of-pocket costs for its poorest Obamacare customers.

President Donald Trump defended plans to withhold federal payments on Twitter in the early morning hours Friday.

Other suits could be filed by health insurance companies, which are likely to contend that the payments can't be immediately suspended. "Dems should call me to fix!" "Piece by piece we will now begin the process of giving America the great Health Care it deserves!"

The House sued the Obama administration, arguing the White House was illegally funding cost-sharing reduction subsidies payments to insurers.

Ending federal payments would cause premiums to rise, unless Trump changes his mind or Congress takes separate action to authorize the money. Dianne Feinstein and Kamala Harris blasted Trump for taking steps to unwind Obamacare, following several failed Republican attempts to repeal and replace the federal health care law.

"This is patently a decision that is reckless".

"The subsidies are required by the ACA, and (the president) can't simply refuse to pay them", Schneiderman said.

The complaint will seek a temporary restraining order, preliminary injunction and permanent injunction requiring the cost-sharing reduction payments be made.