States ask court to force Trump to pay Obamacare insurers key subsidies

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Xavier Becerra, Attorney General of the State of California

The attorney generals of California and New York on Wednesday announced that they and a coalition of states asked a court to force the Trump administration to continue paying Obamacare insures key reimbursements for subsidies.

The request for a emergency temporary restraining order comes six days after the Trump administration ceased making the payments, worth billions of dollars annually to health insurers.

California, New York and 17 other states already had sued the administration seeking restoration of the so-called cost-sharing reduction payments.

The payments reimburse insurers for discounts that they must give millions of Obamacare customers for their out-of-pocket health costs, including co-payments, coinsurance and deductibles.

The Trump administration has said that the payments cannot be made because Congress never separately appropriated the money for them.

But the coalition of states suing the admininstration argues that there is no need for a separate authorization because the CSRs discounts, and the payments to insurers for them, are part of the Affordable Care Act, the Obamacare law.

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