Attorneys general plan to file suits to continue ACA payments

Attorneys general plan to file suits to continue ACA payments

Attorneys general plan to file suits to continue ACA payments

A coalition of USA 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.

Meanwhile, in California, Attorney General Xavier Becerra said he similarly expected to file a suit to have the payments continue. "It's past time President Trump learned he doesn't get to pick and choose which laws he'll follow and which bills he'll pay".

Becerra said it was not clear yet how many other states would join the lawsuit.

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The lawsuit, which will be filed in federal court in the Northern District of California contends that by not making the cost-sharing reduction payments as mandated in the Affordable Care Act, the Trump administration is not following the law.

The payments, known as cost-sharing subsidies, were created under the ACA to help insurers lower out-of-pocket costs for millions of Americans who buy health insurance through the exchange. "Massive subsidy payments to their pet insurance companies has stopped. Piece by piece we will now begin the process of giving America the great Health Care it deserves!"

Schneiderman said Trump based his decision on guidance from the Departments of Justice and Health and Human Services that there were no direct provisions in law calling for the cost reduction payments. Stopping the payments would trigger a spike in premiums for next year, unless Trump reverses course or Congress authorizes the money.

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In statements, California Democratic Sens.

Harris called the action "devastating".

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

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Becerra said the lawsuit is aimed at preserving the cost-sharing payments and preventing people from losing financial assistance to cover health care costs. Becerra added that Trump's order is "essentially a $7-billion dollar tax increase for working families trying to hold onto their health insurance".

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