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More Than 15 States To Sue Over Trump Health Care Move

16 October 2017

Attorney generals from 18 states will sue the Trump administration after President Donald Trump announced Thursday that he will end cost-sharing subsidies to payers, according to ABC News.

The new lawsuit would be separate from an existing case now pending before an appeals court in Washington in which 16 Democratic state attorneys general are defending the legality of the payments.

NY attorney general Eric Schneiderman, a Democrat, said he anticipates continuing with the litigation on a case that is been on hold for a while.

"Millions will lose access to affordable health care, plunging ACA markets into chaos and risking insurance even for those who don't require assistance", Harris said in a statement.

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The White House says the subsidies are illegal, because Congress never appropriated the money.

The new lawsuit would be separate from a case pending before an appeals court in the District of Columbia in which 16 Democratic state attorneys general are defending the legality of the payments. Frustrated by the failure of his fellow Republicans who control both houses of Congress to repeal and replace Obamacare, Trump has taken several steps to chip away at it.

Trump's announcement also won't affect the rates Californians will pay for insurance in 2018 because the state did not count on the Trump administration funding the subsidies when it developed rates for next year with the 11 health plans offered through Covered California.

The state upped its marketing budget for Covered California to $111 million and extended its registration deadline to January 31, aiming to give people more opportunities to sign up for insurance.

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The administration will not make the next payment to insurers, scheduled for Wednesday, U.S. Attorney General Jeff Sessions said. Becerra added that Trump's order is "essentially a $7-billion dollar tax increase for working families trying to hold onto their health insurance". "We have taken aggressive actions to ensure that whatever happens in Washington, essential health benefits will continue to be the rule in NY, not the exception, and we will continue to fight for quality and affordable health care for all New Yorkers". "No", Mulvaney said in an interview with Politico on Friday.

Shares of US hospital companies and health insurers closed down on Friday after the subsidies announcement.

"A lot of us anticipated it", said Martin Hickey, the nonprofit insurer's CEO, noting that federal premium subsidies will cover the higher costs for most Obamacare customers. While the payments go to the insurance companies, the consumers benefit because the savings are passed on to them in the form of lower deductibles, copays and prescription costs.

"We're going to court today because we need to stand up for families across this country", said Massachusetts Attorney General Maura Healey.

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More Than 15 States To Sue Over Trump Health Care Move