Federal judge allows Trump to end cost-sharing subsidies

By Shelby Livingston
October 25, 2017 - Modern Healthcare

A federal judge on Wednesday denied a request from state attorneys general to stop the Trump administration from scrapping the cost-sharing reduction subsidies that are paid to insurance companies to help lower costs for low-income Americans.

U.S. District Judge Vince Chhabria, an Obama administration appointee in the U.S. District Court for the Northern District of California, said the Trump administration had a stronger legal argument for stopping payment for CSRs than the 19 state attorneys general that sued to restore them. Reviving the payments would be "counterproductive," Chhabria wrote

"State regulators have been working for months to prepare for the termination of these payments. And although you wouldn't know it from reading the states' papers in this lawsuit, the 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," Chhabria wrote in his opinion released Wednesday.

Story developing...