Schneiderman to Trump on Obamacare cuts: "See you in court"

Pennsylvania AG Josh Shapiro

California and 17 other states filed a lawsuit Friday challenging the Trump administration's decision to roll back cost-sharing subsidies that help reduce the price of healthcare for millions of Americans.

CT has joined several other states in a lawsuit against the Trump administration over its decision to end subsidies for low-income consumers who get their health insurance from Obamacare exchanges.

New York Attorney General Eric Schneiderman described the decision, announced late October 12 by the White House, as "Cruel", "breathtakingly reckless" and "unlawful", CNBC reported. The Greater New York Hospital Association said the action creates an $870 million hole in the program. The challenge holds that the subsidies are lawful, and that Trump's actions violate the Administrative Procedure Act by suddenly pulling money and refusing to execute federal law.

Halting the ObamaCare subsidy payments amounts to killing the Affordable Care say critics of Trump's decision.

President Donald Trump defended plans to withhold federal payments on Twitter in the early morning hours Friday.

More than 6 million Americans benefit from the subsidies, which are available to people who buy health insurance on government-run exchanges. Schneiderman says the lawsuit will argue that the subsidies are codified under the ACA, and therefore, they must be paid as long as the health care law remains in force.

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A 64-year-old woman who benefits from CSR payments told ABC News she was "scared, anxious and worried" after learning of the Trump administration's decision.

Joining Calif and NY in the new suit are the attorneys general of Kentucky, Massachusetts, Connecticut, Delaware, Maryland, Oregon, North Carolina, Illinois, Vermont, Pennsylvania, Rhode Island, Virginia, Minnesota, New Mexico, Washington, Iowa, and the District of Columbia. California Attorney General Xavier Becerra is leading the lawsuit. "We have taken aggressive actions to ensure that whatever happens in Washington, essential health benefits will continue to be the rule in NY, not the exception, and we will continue to fight for quality and affordable health care for all New Yorkers".

Shares of USA hospital companies and health insurers closed down on Friday after the subsidies announcement.

The White House announced the cut-off just hours after Trump signed an order meant to allow insurers to sell lower-cost, bare-bones policies with limited benefits and consumer protections.

Schneiderman said Trump based his decision on guidance from the Departments of Justice and Health and Human Services that there were no direct provisions in law calling for the cost reduction payments. One of them, Susan Collins, a moderate Republican from ME who had been contemplating running for governor next year, on Friday said she planned to remain in the Senate and would use her voice in reforming the healthcare system.

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