Judge Rules Against States In Insurer Subsidies Case, Saying They’ve Found Good Workarounds
"The emergency relief sought by the states would be counterproductive," U.S. District Judge Vince Chhabria said in the ruling. "State regulators have been working for months to prepare for the termination of these payments."
The New York Times:
Siding With Trump, Judge Clears Way For Trial Over Health Subsidies
A federal judge sided with the Trump administration on Wednesday in a ruling against 18 states that sought to compel the federal government to pay subsidies to health insurance companies for the benefit of millions of low-income people. (Pear, 10/25)
The Associated Press:
States Lose Push To Force Trump To Restart Health Subsidies
State attorneys general, all Democrats and led by Xavier Becerra of California, argued that the monthly payments are required under former President Barack Obama's health care law and cutting them off will harm consumers. The payments reimburse insurers for providing lower-income people with discounts on out-of-pocket costs. U.S. District Judge Vince Chhabria, an Obama appointee, said the states had devised workarounds to the lost subsidies that would give millions of lower-income people even better health care options. (Thanawala, 10/25)
The Washington Post:
Federal Judge Refuses To Order The Trump Administration To Resume ACA Payments
Chhabria pointed out that most states’ insurance regulators had already prepared for a possible end to the money, by allowing companies to charge higher rates for the coming year. “Although you wouldn’t know it from reading the states’ papers in this lawsuit,” he wrote, “the truth is that most state regulators have devised responses.” (Goldstein and Eilperin, 10/25)
Los Angeles Times:
Judge Refuses To Block Trump's Order To End Obamacare Subsidies
The judge also appeared to be close to rejecting the states’ contention that Trump violated the law by discontinuing the payments. “Although the case is at an early stage, and although it's a close question, it appears initially that the Trump Administration has the stronger legal argument,” Chhabria wrote. (Dolan, 10/25)
Politico:
Judge Denies Request To Force Trump To Pay Obamacare Insurance Subsidies
“The fight for affordable healthcare moves forward,” California Attorney General Xavier Becerra said in a statement. “The actions by the Trump Administration undermine critical payments that keep costs of healthcare affordable for working families. The judge made clear in his ruling that the ACA is the law of the land. Without an emergency order halting the Trump action, swift action in this litigation becomes even more compelling.” (Colliver and Bettelheim, 10/25)
San Jose Mercury News:
Judge: Trump Doesn't Have To Resume ACA Subsidies
Gregory Brown, who represented California at the hearing, said the loss of the subsidies was creating “uncertainty and chaos” that could lead insurance companies to opt out of the health law.
The administration had been making the monthly payments even as Trump threatened to cut them off to force Democrats to negotiate over health care. A bipartisan effort in Congress to restore the payments has run into opposition. (Thanawala, 10/25)
San Francisco Chronicle:
Judge Denies California’s Bid To Reinstate Affordable Care Act Subsidies
A spokeswoman for California Attorney General Xavier Becerra said Wednesday that the states will continue pressing for a permanent resolution to the lawsuit that they hope will require the administration to resume the payments. (Ho, 10/25)
The Wall Street Journal:
Trump Administration Won’t Be Forced To Provide Health-Insurance Subsidies
The government payments reimbursed insurers for providing subsidies to some low-income consumers for out-of-pocket costs, including deductibles and copays. Insurers are required by the ACA to provide these cost-sharing subsidies and about seven million people who buy health plans on the ACA’s insurance exchanges get them. President Donald Trump announced earlier this month that he would end the subsidies as of Oct. 18 because Congress never appropriated money for the program. The payments are estimated at $7 billion in 2017. (Kendall and Armour, 10/25)