SACRAMENTO – California Attorney General Xavier Becerra led a coalition of 18 states and the District of Columbia in filing a lawsuit in the Northern District of California against the Trump Administration’s abrupt decision to stop making healthcare subsidy payments required by the federal Affordable Care Act. That harsh action violates the law and will lead to higher costs. It puts health coverage for over 6 million Americans at risk.
"In one week, the Trump Administration has re-opened the door to 'junk' health insurance plans and cut off access to contraception for millions of women. Now they're refusing to comply with federal law in a way that will hike the cost of care for millions of Americans by withholding critical subsidies that make care more affordable,” said Attorney General Becerra. “Taking these legally required subsidies away from working families' health plans and forcing them to choose between paying rent or their medical bills is completely reckless. This is sabotage, plain and simple. I and many of my attorney general colleagues will fight vigorously to ensure Californians and all Americans as taxpayers receive the healthcare the law provides.”
The Affordable Care Act’s mandatory cost-sharing reduction payments help working families access more affordable healthcare coverage by helping individuals with incomes between $11,880 and $29,700 enroll in plans with lower deductibles, copayments or coinsurance, reducing their out-of-pocket costs.
Joining today’s filing are the Attorneys General of Kentucky, Massachusetts, Connecticut, Delaware, Maryland, Oregon, North Carolina, Illinois, New York, Vermont, Pennsylvania, Rhode Island, Virginia, Minnesota, New Mexico, Washington, Iowa, and the District of Columbia.
A copy of the complaint, as well as a fact sheet on the complaint, is attached to the electronic version of this release at oag.ca.gov.