U.S. states to file new suit challenging Trump healthcare subsidy cut

NY will join California, Massachusetts and a dozen other states in suing the Trump administration for eliminating the Affordable Care Act's cost-sharing reductions, Attorney General Eric Schneiderman said Friday afternoon.

The Trump administration is facing a new multiple state lawsuit following its decision to end key Obamacare payments to insurers.

Referring to President Trump, Schneiderman said, "He has taken his threats of off Twitter and brought them into the living rooms of working families across America and the offices of America's doctors, nurses and other health care providers".

Pennsylvania Attorney General Josh Shapiro on Wednesday became the latest to sue the Trump administration over its move to roll back the Affordable Care Act's birth control coverage mandate.

In May, Schneiderman and California attorney general Xavier Becerra, leading a coalition of 18 attorneys general, moved to intervene in House v. Price in order to protect millions of Americans' access to affordable health care.

"Undermining the Affordable Care Act has been Donald Trump's and many Republicans' plans for a long time", Becerra said. Among other claims, the lawsuit says the new rule is unconstitutional because it violates the separation of church and state, and allows employers to discriminate against employees on the basis of sex. It puts health coverage for over 6 million Americans at risk.

The effect of the federal government's decision is something like this: Insurers get less money for helping low-income people with out-of-pocket costs on silver plans; premiums on silver plans increase more to compensate; and that forces the federal government to increase all APTC based subsidies to make sure people can still afford insurance. "Our coalition of states stands ready to sue if President Trump cuts them off", Schneiderman added.

In recent years, the USA federal government has paid the Obamacare subsidies without congressional authorization, which critics claim violates a constitutional requirement that congressional approval is required for budgeting and spending money.

According to Becerra, the mandatory CSR payments under the Affordable Care Act (ACA) help working families purchase healthcare insurance. The DC Circuit granted their intervention in August.

Vanessa Coleman