Judge rejects bid by 18 US states to revive Obamacare subsidies

A man looks over the Affordable Care Act (commonly known as Obamacare) signup page on the HealthCare.gov website in New York in this October 2, 2013 photo illustration. (REUTERS)

SAN FRANCISCO/WASHINGTON: A US judge on Wednesday refused to block President Donald Trump鈥檚 decision to end subsidy payments to health insurers under Obamacare, handing Trump a victory against Democratic attorneys general who have regularly challenged the president鈥檚 policies in court.
US District Judge Vince Chhabria in San Francisco said the federal government did not have to make the payments while litigation over the subsidies unfolds.
Chhabria, appointed by former Democratic President Barack Obama, wrote that although the case appeared to be a close call, 鈥渋t appears initially that the Trump administration has the stronger legal argument.鈥�
The Trump administration this month terminated the payments to the insurers, which help cover medical expenses for low-income Americans, as part of several moves to dismantle Obama鈥檚 signature health care law formally known as the Affordable Care Act.
Democratic attorneys general have repeatedly opposed Trump in court this year over immigration, the environment and health care.
After Trump鈥檚 decision to end the insurance subsidies, 18 states and the District of Columbia asked for an immediate order halting Trump鈥檚 move while the case is being litigated. They argued that terminating the payments harmed customers by raising insurance rates.
In his ruling, Chhabria said the kind of emergency order requested by the states was not necessary.
鈥淭he truth is that most state regulators have devised responses that give millions of lower-income people better health coverage options than they would otherwise have had,鈥� Chhabria said.
鈥淭his is true in almost all the states joining this lawsuit,鈥� the judge added.
US Justice Department spokeswoman Lauren Ehrsam said the subsidy payments usurped Congress鈥� spending power and that the department was pleased with Chhabria鈥檚 ruling.

BIPARTISAN PROPOSAL
California Attorney General Xavier Becerra, who is leading the lawsuit, said in a statement that Trump鈥檚 decision undermined payments that keep health care affordable.
鈥淲ithout an emergency order halting the Trump action, swift action in this litigation becomes even more compelling,鈥� he said.
US Senator Patty Murray, a Washington state Democrat, said the ruling 鈥渙nly makes it more critical鈥� that the Senate pass a bipartisan agreement she co-authored, which would authorize the subsidies.
Earlier on Wednesday, the nonpartisan Congressional Budget Office found that the proposal would cut the US deficit by $3.8 billion over the next decade.
The subsidies were amounting to nearly $600 million a month. They were due to cost $7 billion this year and were estimated to grow to $10 billion for 2018, according to congressional analysts.
With the beginning of enrollment for 2018 insurance policies on Obamacare exchanges set for Nov. 1, Chhabria suggested that the states focus on communicating the message that they have devised a response to the subsidy cuts that prevents harm to a large number of people.
鈥淚f the states are so concerned that people will be scared away from the exchanges by the thought of higher premiums, perhaps they should stop yelling about higher premiums,鈥� Chhabria wrote.
Insurers say they do not profit from the subsidies under the Affordable Care Act, but pass them on directly to consumers to reduce deductibles, co-payments and other out-of-pocket medical expenses for low-income people.
Premiums for Obamacare 鈥渟ilver鈥� plans, generally the most popular type of health insurance plan on the individual health insurance market, rose 34 percent on average for 2018, according to an analysis published on Wednesday by Avalere Health, a research and consulting firm.