The Trump administration is facing a new multiple state lawsuit following its decision to end key Obamacare payments to insurers.
In a statement, California Attorney General Xavier Becerra said he is leading a coalition of states to file a case against the Trump administration. The coalition is composed of 18 states and the District of Columbia.
On Thursday night, the White House said the federal government will stop the cost-sharing reduction (CSR) payments for insurers under Obamacare.
According to the Trump administration, Congress did not appropriate funds for CSR payments. The previous administration circumvented the appropriation process and unlawfully used unappropriated funding for CSR payments.
In response, Democratic leaders denounced the federal government’s action as “spiteful” and a “pointless sabotage on working families.”
California AG says Trump administration violates the law
On Friday, Attorney General Becerra argued that the federal government’s decision was “harsh” and “violates the law.” He also stated that it will “lead to higher costs,” putting the health coverage of more than six million Americans at risk.
