USA states to file new suit challenging Trump healthcare subsidy cut

USA states to file new suit challenging Trump healthcare subsidy cut

At a time when millions of Americans remain uninsured or underinsured, President Trump's decision to sabotage the Affordable Care Act will substantially raise health care costs for the American people and lead to lower quality coverage.

New York Governor Andrew Cuomo has lashed at President Trump's executive order to slash subsidies to Americans for Affordable Care Act insurance purchase and the state's Attorney General Eric T. Schneiderman plans to sue the administration.

California Attorney General Xavier Becerra - joined by the attorneys general of Connecticut, Kentucky, and MA - told reporters that they would be filing a new lawsuit in the US District Court for the Northern District of California, that accuses the Trump administration of violating the sections of the Affordable Care Act that require the subsidies, as well as other federal law. "Massive subsidy payments to their pet insurance companies has stopped".

The subsidies have been the subject of an ongoing lawsuit originally lodged by House Republicans who sued the Obama administration in 2010, arguing the payments are illegal because Congress did not formally appropriate the funds.

"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 a statement confirming the administration's plans to drop cost sharing subsidies, White House Press Secretary Sarah Huckabee Sanders called the CSR payments "the bailout of insurance companies through unlawful payments".

The lawsuit has the backing of the state's health-care industry and large health-worker union 1199/SEIU, the attorney general said. The payments - known as cost-sharing reductions - are required by Obamacare. A federal district judge a year ago ruled that the subsidy payments were unlawful, but put her ruling on hold pending the Obama administration's appeal.

The lawsuit is the second one announced by the California Attorney General in a week, challenging Trump's attempts to scale back provisions of the Affordable Care Act.

Becerra said it's unclear what will happen to a pending challenge to the Obamacare subsidies filed by House Republicans.