US states plan suit to block Trump Obamacare subsidies cut

WASHINGTON/SAN FRANCISCO: Eighteen US states vowed to sue 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 Democratic leaders to negotiate a deal.

One 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 this year and were estimated at US$10 billion for 2018, according to congressional analysts.

“As far as the subsidies are concerned, I don’t want to make the insurance companies rich,” Trump told reporters 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 Democratic predecessor Barack Obama’s signature domestic policy achievement. Frustrated by the failure of his fellow Republicans who control both houses of Congress to repeal and replace Obamacare, Trump has taken several steps to chip away at it.

Democrats accused Trump of sabotaging the law.

Democratic attorneys general from the 18 states as well as the Washington, D.C., planned to file a lawsuit in federal court in California later on Friday. The states include: 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.

Legal experts said the states are likely to face an uphill battle in court.

“His effort to gut these subsidies with no warning or even a plan to contain the fallout is breathtakingly reckless,” New York Attorney General Eric Schneiderman said.

“This is an effort simply to blow up the system.” — Reuters