California sues over Trump's health care law cuts
- Author: Adam Floyd Oct 15, 2017,
Oct 15, 2017, 0:38
President Donald Trump announced late Thursday that the White House will end the cost-sharing reductions that are paid to insurance companies under the Affordable Care Act to offset subsidies the insurers give to modest-income Americans in order to keep the policies affordable.
These subsidies, known as cost-sharing reduction payments (CSR) are a key tenet of the Affordable Care Act (ACA).
"Taking these legally required subsidies away from working families' health plans and forcing them to choose between paying rent or their medical bills is completely reckless", California Attorney General Xavier Becerra said in a statement.
"President Trump and ultraconservatives in congress are continuing their reckless assault on our health care and going after our NY values", Cuomo said.More news: Indonesian, Vietnamese women plead not guilty to Kim Jong Nam murder
The attorneys general want to force Trump to continue the funding. But Congress has never funded the subsidies, and yesterday the White House called them "unlawful", claiming the government could not pay for them.
In addition to constitutional violations, the states' lawsuit alleges that the President's decision to withhold mandatory CSR payments violates both the ACA and the Administrative Procedure Act.
Local advocates for health care access are calling on Congress to take action to protect the payments. While a Washington trial court judge agreed and barred the government from making them, she put her ruling on hold pending the Obama administration's appeal. A federal district judge past year ruled that the subsidy payments were unlawful, but put her ruling on hold pending the Obama administration's appeal. On Friday, the administration told the court that it will not make the October 18 subsidy payments.
Becerra said it's unclear what will happen to a pending challenge to the Obamacare subsidies filed by House Republicans.