New York, other states sue to halt Trump from scrapping Obamacare subsidies

Schneiderman to Trump on Obamacare cuts: “See you in court”

NY Attorney General Will Sue Trump To Protect Healthcare Subsidies For The Poor

He said the Republican president's decision to end subsidies to insurers for low-income participants would cripple the state's health care market, drive up insurance costs and cause poor people to go untreated.

State Attorney General Eric Schneiderman said Trump's decision, announced late Thursday, to cancel the cost-sharing subsidies was "breathtakingly reckless" and would lead to higher health care costs and more Americans without coverage.

Becerra and the other attorneys general said they are filing the federal lawsuit Friday, arguing that withholding cost-sharing subsidies is unlawful and violates a mandate in the law. 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.

The White House announced it will eliminate $7 billion in payments to insurers. "Massive subsidy payments to their pet insurance companies has stopped".

CSR payments were the subject of a lawsuit filed by House Republicans during the Obama administration, which House Republicans ultimately won.

"Now, if the Democrats were smart, what they'd do is come and negotiate something where people could really get the kind of health care that they deserve, being citizens of our great country", Trump told reporters gathered on the South Lawn of the White House. "In light of this analysis, the government can not lawfully make the cost-sharing reduction payments".

Acting Health and Human Services Secretary Eric Hargan announced the plans to halt cost-sharing subsidies Thursday, saying "We will discontinue these payments immediately".

California Attorney General Xavier Becerra speaks in Los Angeles on September 12, 2017. A federal district judge previous year ruled that the subsidy payments were unlawful, but put her ruling on hold pending the Obama administration's appeal. "Make no mistake about it, Trump will try to blame the Affordable Care Act, but this will fall on his back and he will pay the price for it". Last week, Becerra's office sued the Trump administration over its rollback of the ACA's birth control mandate that allows more employers to opt out of the mandate by claiming religious or moral objections.

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