18 states sue over Trump-halted ObamaCare payments
A new multi-state lawsuit has been announced to stop President Trump from halting key ObamaCare payments to insurers.
Eighteen states and Washington, D.C., signed onto the lawsuit filed Friday in federal court in California, according to Sarah Lovenheim, a spokeswoman for California Attorney General Xavier Becerra (D).
On Thursday night, Trump announced he would stop making the payments, which led to an outcry from critics saying he was sabotaging the health-care law.
The complaint will seek a temporary restraining order, preliminary injunction and permanent injunction requiring the cost-sharing reduction payments be made.
— Xavier Becerra (@AGBecerra) October 12, 2017
— Eric Schneiderman (@AGSchneiderman) October 13, 2017
The administration, on a monthly basis, had been funding cost-sharing reduction subsidies, which compensate insurers for lowering the out-of-pocket costs of certain ObamaCare enrollees.
Trump has repeatedly signaled he might cut them off, while insurers have been pleading for long-term certainty that they would continue.
“Without the Affordable Care Act [ACA] and its subsidies for these families, millions more would be left in the cold without coverage. California isn’t about to turn its back on hardworking families who are fighting to hold onto their ACA health insurance. We’ve taken the Trump administration to court before and won, and we’re ready to do it again if necessary,” Becerra said in a statement Thursday night, before the lawsuit was officially announced.
Additionally, New York Attorney General Eric Schneiderman (D) said he anticipates proceeding with litigation on a case that’s currently been on hold.
The House sued the Obama administration, arguing the White House was illegally funding cost-sharing reduction subsidies payments to insurers.
Earlier this summer, the U.S. Court of Appeals for the District of Columbia Circuit ruled that a coalition of attorneys general — including Schneiderman and Becerra — can defend the payments.
“The fast track for initial relief will be in the case we’re filing in California,” Schneiderman said, referring to the new lawsuit.
Updated: 8 p.m.