California to sue Trump administration over health insurance subsidies

California to sue Trump administration over health insurance subsidies

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.

California Attorney General Xavier Becerra (D) also tweeted the state's intention to go after 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.

Schneiderman says the decision is unacceptable, "cruel" and illegal.

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"The insurance companies have made a fortune". Becerra said Friday it is unclear whether the two lawsuits will be consolidated. The Obama administration appealed and continued making the payments, which cost an estimated $7 billion per year. "It's long past time that President Trump learned that he doesn't get to just pick and choose which laws he'll follow, and which bills he'll pay".

The cost-sharing reduction move came on the heels of an executive order that President Donald Trump signed earlier Thursday to loosen certain insurance regulations. "Obamacare is a mess and we need to replace the whole thing, repeal the whole thing". "Piece by piece we will now begin the process of giving America the great Health Care it deserves!"

"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.

"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", Schneiderman said in a statement. Short term, Congress must work to improve the Affordable Care to lower costs, insure more people and reduce the price of prescription drugs. If Trump is successful, insurance premiums could increase 15 to 20 percent, Becerra estimated.

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