NY and Other AGs Vow to Sue Trump Administration Over Loss of ACA Subsidy
Attorney General Eric Schneiderman is among the state AGs vowing to sue the Trump administration over the end of critical subsidy payments to insurers selling coverage through the Affordable Care Act.
October 13, 2017 at 04:15 PM
2 minute read
Attorney General Eric Schneiderman vowed to sue the Trump administration over the end of critical subsidy payments to insurers selling coverage through the Affordable Care Act.
“I will not allow President [Donald] Trump to once again use New York families as political pawns in his dangerous, partisan campaign to eviscerate the Affordable Care Act at any cost,” Schneiderman said in a statement.
At a news conference Friday in New York City, Schneiderman announced that his office and officials from other states, including California, are filing a multistate lawsuit, calling Trump's decision to end the cost-sharing reduction payments “cruel and unlawful.” Massachusetts Attorney General Maura Healy and Connecticut AG George Jepsen, also Democrats, are among those expected to join a lawsuit.
The decision to end the payments to insurers, estimated at $7 billion this year, is the biggest blow to the Obama-era health law, which Republicans in Congress have unsuccessfully attempted to repeal over the last several months, as reported in sibling publication The National Law Journal.
The cost-sharing reduction payments fund the Essential Plan in the New York health insurance exchange, which provides subsidized health insurance plans to roughly 700,000 New Yorkers. The loss of the funds could blow a $1 billion hole in the state budget, which is already dealing with a looming $4 billion budget deficit.
In a statement issued Friday, New York Gov. Andrew Cuomo said he would support a legal challenge to Trump's decision to end the subsidies, which are payments the federal government makes to insurers to reduce premiums and other expenses for low-income individuals.
“Unable to move the repeal of the Affordable Care Act in Congress, President Trump is now attempting to administratively dismantle the ACA bit by bit,” Cuomo said. “His actions will slash benefits and raise premiums in many health plans by 20 percent next year according to the non-partisan Congressional Budget Office, and it will single handedly destabilize insurance markets. With a swipe of a pen, President Trump puts the health of New Yorkers at risk.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllWhy Wait? Arbitrate! The Value of Consenting to Arbitrate Your SUM Cases at NAM
5 minute readBipartisan Lawmakers to Hochul Urge Greater Student Loan Forgiveness for Public-Interest Lawyers
Testing The Limits of “I Agree”: Court of Appeals Examines Clickwrap Arbitration Agreements
13 minute readAntitrust Yearly Recap: Aggressive Changes by the Biden Administration Precede President Trump’s Return
14 minute readTrending Stories
- 1'A Death Sentence for TikTok'?: Litigators and Experts Weigh Impact of Potential Ban on Creators and Data Privacy
- 2Bribery Case Against Former Lt. Gov. Brian Benjamin Is Dropped
- 3‘Extremely Disturbing’: AI Firms Face Class Action by ‘Taskers’ Exposed to Traumatic Content
- 4State Appeals Court Revives BraunHagey Lawsuit Alleging $4.2M Unlawful Wire to China
- 5Invoking Trump, AG Bonta Reminds Lawyers of Duties to Noncitizens in Plea Dealing
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250