New York, California threaten to sue over health-care subsidies

New York, California threaten to sue over health-care subsidies
© Greg Nash

Attorneys general from California and New York say they are prepared to sue the Trump administration to protect health care subsides that the White House said would be cut off.

New York Attorney General Eric Schneiderman (D) said in a statement that hundreds of thousands of New York families rely on ObamaCare's subsidies for their health care.

"Again and again, President Trump has threatened to cut off these subsidies to undermine our healthcare system and force Congress to the negotiating table," he said in the statement. "That's unacceptable."

Schneiderman said he wouldn't let Trump use New York families as "political pawns in his dangerous, partisan campaign to eviscerate the Affordable Care Act at any cost."

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"This summer, the courts granted our intervention to defend these vital subsidies and the quality, affordable health care they ensure for millions of families across the country," he said.

"Our coalition of states stands ready to sue if President Trump cuts them off," he added.

California Attorney General Xavier BecerraXavier BecerraOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating California AG on Trump EPA: ‘It’s almost as if they believe they’re above the law’ Sanctuary city policies are ruining California — here’s why I left MORE (D) tweeted he is "prepared to sue the #Trump Administration to protect #health subsidies, just as when we successfully intervened in #HousevPrice!"

The comments came as the White House announced late Thursday that Trump would cut off key payments to insurers selling ObamaCare coverage.

The action represents Trump's most aggressive move yet to dismantle ObamaCare, after GOP efforts to repeal and replace the health care law failed this year.

Trump has repeatedly threatened to cut off the disbursements to insurers, known as cost sharing reduction payments, which are worth an estimated $7 billion this year. The White House said Thursday night that the administration "cannot lawfully" make the payments.