States Sue Trump Admin Over ObamaCare Payments, More States to Join

by Ray Hunter October 15, 2017, 0:35
States Sue Trump Admin Over ObamaCare Payments, More States to Join

California Attorney General Xavier Becerra said Friday he is suing the Trump administration to stop the federal Department of Health and Human Services from withholding cost-sharing subsidies that help low- and middle-income people pay for health coverage under the federal health care law. 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.

While announcing the end to subsidy payments, Trump said his motivation was stopping insurance insurance companies from cashing in.

"It will result in about $870 million hole in funding for the program, putting New York state basically in an untenable position", said Laura Alfredo, deputy general counsel with the Greater New York Hospital Association. The Trump administration and many Republicans say the government can not legally continue to make the so-called cost-sharing payments. Our coalition of states stands ready to sue if President Trump cuts them off.

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"The insurance companies have made a fortune". In May, he and Becerra led a coalition of 18 Attorneys General and moved to intervene in House v. Price to protect millions of Americans' access to affordable health care. On Thursday, he reversed course, citing a three-page memo from U.S. Attorney General Jeff Sessions that said the payments lack a valid appropriation.

The White House says the subsidies are illegal, because Congress never appropriated the money. Millions who bought insurance through the Affordable Care Act marketplaces may be unable to afford coverage if his move drives up premiums further, and insurers may seek to pull out of the market.

It's Ferguson's fifth lawsuit against the administration.

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Becerra said it's unclear what will happen to a pending challenge to the Obamacare subsidies filed by House Republicans.

Jetter says, "From what I understand Trump ending the subsidies really is a power play to force Congress to create a bipartisan fix to or to the Affordable Care is kind of scary". They also argued that Trump had violated the Administrative Procedure Act.

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