18 states sue Trump govt for ending Obamacare subsidies

WASHINGTON DC: Eighteen states in the United States sued President Donald Trump’s administration on Friday to stop him from scrapping a key component of Obamacare — subsidies to insurers that help millions of low-income people pay medical expenses — even as Trump invited Democrat leaders to negotiate a deal.

A day after his administration announced plans to end the payments next week, Trump said he would dismantle Obamacare “step by step”.

His latest action raised concerns about chaos in insurance markets. The subsidies cost US$7 billion (RM29.5 billion) this year and were estimated at US$10 billion for next year.

“As far as the subsidies are concerned, I don’t want to make the insurance companies rich,” Trump said at the White House. “They’re making a fortune by getting that kind of money.”

Trump’s action took aim at a critical element of the 2010 law, his Democrat predecessor Barack Obama’s signature domestic policy achievement. Frustrated by the failure of Republicans in Congress to repeal and replace Obamacare, Trump has taken steps to chip away at it.

Democrats accused Trump of sabotaging the law.

Democrat attorneys-general from 18 states, as well as Washington DC, filed a lawsuit in federal court in California on Friday. The states are California, Connecticut, Delaware, Kentucky, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington state.

The states will ask the court to force Trump to make the next payment. Experts said the states faced an uphill battle in court.

If the subsidies vanish, low-income citizens who get insurance through Obamacare online marketplaces would face higher premiums and out-of-pocket medical costs. About 10 million people are enrolled in Obamacare through online marketplaces, and most receive subsidies. NYT