Attorneys general plan to file suits to continue ACA payments

New York and at least a dozen other states are suing to stop President Trump from cancelling Obamacare payments to insurance companies

The lawsuit has the backing of the state's health-care industry and large health-worker union 1199/SEIU, the attorney general said.

"Hundreds of thousands of NY families rely on the Affordable Care Act's subsidies for their health care - and 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 continued. "It's past time President Trump learned he doesn't get to pick and choose which laws he'll follow and which bills he'll pay".

Other lawsuits are also being filed around the nation, and the Attorney General said he expects there may be some consolidation later.

Trump's decision to end the subsidies "is patently a decision that is reckless, it is sabotage, plain and simple", Becerra said in a call with reporters Friday. He says his office's suit will contend that the Affordable Care Act is a law, and that the cost sharing reduction payments are integral to maintaining the law.

President Donald Trump defended plans to withhold federal payments on Twitter in the early morning hours Friday. "Massive subsidy payments to their pet insurance companies has stopped". "Dems should call me to fix!" In New York, we believe health care is a right, not a luxury.

The comments came as the White House announced late Thursday that Trump would cut off key payments to insurers selling ObamaCare coverage. A federal district judge past year ruled that the subsidy payments were unlawful, but put her ruling on hold pending the Obama administration's appeal. "In 2016, a federal court ruled that the Administration had circumvented the appropriations process, and was unlawfully using unappropriated money to fund reimbursements due to insurers".

In statements, California Democratic Sens.

Trump's move is part of his stated goals of causing chaos in the Obamacare marketplaces, now that Congress' ACA repeal efforts have failed.

The filing by the attorneys general in San Francisco comes just a day after the White House announced it was ending those Affordable Care Act payments immediately.

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.

"The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system", the White House said in a statement.

"His actions will slash benefits and raise premiums in many health plans by 20% next year, according to the non-partisan Congressional Budget Office, and it will single handedly destabilize insurance markets", Cuomo said.



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