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Judge refuses to force Trump admin to pay Obamacare subsidies – reports | Judge refuses to force Trump admin to pay Obamacare subsidies – reports |
(35 minutes later) | |
A US judge has refused to block the Trump administration's decision to halt Obamacare subsidy payments to insurance companies. | |
On Wednesday, US District Judge Vince Chhabria in San Francisco rejected a request set forth by 18 states to immediately force the federal government to resume paying health care subsidies, the Reuters reported. | |
The subsidies reimbursed insurers for reducing out-of-pocket costs to low-income consumers who acquired coverage under former President Barack Obama's signature healthcare law, formally titled the Affordable Care Act. | The subsidies reimbursed insurers for reducing out-of-pocket costs to low-income consumers who acquired coverage under former President Barack Obama's signature healthcare law, formally titled the Affordable Care Act. |
Judge Chhabria sided with Trump, saying the government does not have to make payments while litigation concerning the subsidies unfolds, according to Reuters. | |
President Donald Trump earlier this month declared the subsidies, which had been successfully challenged in lower courts, unlawful. He also called on Congress to appropriate funding for the payments. | |
The 18 states said Trump was illegally trying to destroy Obamacare by eliminating the government's payments, and warn that his move will lead to higher costs for taxpayers and consumers. | |
Chhabria wrote in his ruling that the “emergency relief” the states were looking for would be “counterproductive,” according to court documents. | |
Chhabria said that state regulators have been preparing for the termination of the subsidy payments for months, with most state regulators planning to “give millions of lower-income people better health coverage options than they would otherwise have had.” | |
A bipartisan effort in the Senate to extend the blocked federal payments to health insurers failed last week. | A bipartisan effort in the Senate to extend the blocked federal payments to health insurers failed last week. |
The Congressional Budget Office, along with the Joint Committee on Taxation, has estimated that cutting the subsidies will increase the federal deficit, on net, by $194 billion over the next decade. |
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