Attorney General Becerra Seeks Emergency Injunction to Compel Trump Administration to Follow the Law and Pay Americans' Insurance Plan Subsidies

SAN FRANCISCO – In light of the Trump Administration’s abrupt refusal to make the October cost-sharing subsidy payments required by the Affordable Care Act, California Attorney General Xavier Becerra today filed a motion to compel the federal government to follow the law and pay the subsidies that millions of Americans rely on to lower the out-of-pocket costs in their insurance plans.

“This is no longer about a campaign promise or a punchline. The Trump Administration is willingly breaking the law by refusing to make required payments that keep healthcare affordable for millions of Americans. It is taking active steps to sabotage the Affordable Care Act,” said Attorney General Becerra. “No one deserves to live with this imposed medical uncertainty. The cost-sharing subsidy payments protect Americans from being a paycheck away from bankruptcy. Nineteen Attorneys General from California to Pennsylvania refuse to stand for this Administration’s repeated efforts to ignore the rule of law and deny Americans access to basic healthcare.”

The Affordable Care Act’s mandatory cost-sharing subsidy 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.

Just last week, Attorney General Becerra led a coalition of 19 state attorneys general (including the District of Columbia) in suing the Trump Administration over its abrupt decision to sabotage the Affordable Care Act by refusing to make the cost-sharing subsidy payments by the October monthly deadline. More than six million Americans benefit from the cost sharing subsidies. Without the funds, millions stand to lose their health insurance coverage.

A copy of the motion, is attached to the electronic version of this release at oag.ca.gov.