Healthcare Subsidies May Have 17 States Defending Them in Court

State attorney generals just got the green light on defending healthcare subsidies to insurers that offer exchange plans, in federal court.

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A group of state attorney generals asked a federal court to join a case against the Affordable Care Act (ACA) -- in defense of the healthcare subsidies President Donald Trump has threatened not to pay -- and yesterday the court said yes.

According to Constitution Daily, the order gives 17 states and the local Washington, D.C., government the right to defend the constitutionality of insurer payments in ACA, known as cost-sharing subsidies.

The three-page order “raised the prospect that the case would continue to proceed even if the Trump Administration attempted to scuttle it by abandoning its participation in the case or by cutting off the subsidies, which it has indicated it might do,” wrote Lyle Denniston, a 58-year veteran of Supreme Court and legal journalism. The National Constitution Center (NCC), a non-partisan institution established by Congress, regularly features Denniston’s articles.

The order accepted the following key arguments by the group of attorney generals:

  • State interests would be seriously harmed if the subsidies are ended.
  • The Trump Administration will not adequately protect the states’ interests.
  • It’s open to legal debate that the Trump Administration can choose to end the subsidies by its own action

President Trump has said that the government should let the ACA law collapse on its own, but that’s “an event that would be more likely to happen if the Administration were to take unilateral action to end the subsidies,” wrote Denniston.

Andrea Fox is Editor of Gov1.com and Senior Editor at Lexipol. She is based in Massachusetts.