States sue Trump to preserve Obamacare discounts

States sue Trump to preserve Obamacare discounts

States sue Trump to preserve Obamacare discounts

The attorney generals filing the lawsuit represent California, Kentucky, Massachusetts, Connecticut, Delaware, Maryland, Oregon, North Carolina, Illinois, New York, Vermont, Pennsylvania, Rhode Island, Virginia, Minnesota, New Mexico, Washington, Iowa, and the District of Columbia.

The lawsuit will argue that Trump is violating the Administrative Procedure Act by not making the payments and refusing to faithfully execute federal law, among other arguments.

"The federal government - under the direction of the Trump Administration - broke the law and undermined the health and economic independence of American women", Shapiro said today at a news conference at a Planned Parenthood center in Philadelphia. This time, though, the attorney general isn't alone.

California Attorney General Xavier Becerra told reporters that Trump's decision to halt the payments could increase costs up to 20 percent, meaning millions of families will find themselves unable to access healthcare.

Jepsen predicted that Trump's maneuver is aimed at luring younger, healthier people from health care pools, raising rates for those staying in plans. Becerra said he expects more states to join the lawsuit.

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.

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. But Congress has never funded the subsidies, and yesterday the White House called them "unlawful", claiming the government could not pay for them. "Our coalition of states stands ready to sue if President Trump cuts them off", Schneiderman added.

Senate Minority Leader Chuck Schumer, D-N.Y., agreed with Schneiderman, saying that even though the action will be challenged in court, there will be an immedicate effect "because insurance companies will be afraid, raise premiums, and pull out".

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