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AG Healey and other AGs Win Right to Contest Trump Admin on "Cost Sharing Reduction" Payments

AG Healey and other AGs Win Right to Contest Trump Admin on "Cost Sharing Reduction" Payments

August 2, 2017

Yesterday, the D.C. Circuit Court granted the motion of Massachusetts Attorney General Maura Healey and 15 other state attorneys general to intervene in the Affordable Care Act (ACA) cost-sharing reduction (CSR) lawsuit. We truly appreciate the Massachusetts Attorney General’s work on this, and we are proud of our HCFA HelpLine Director Hannah Frigand, whose affidavit submitted to the court helped prove a dispositive issue, that states could intervene because residents would be harmed by the increase in premium costs that would flow from the termination of CSRs.

AG Healey issued a statement on the importance of this case:

The D.C. Circuit Court’s ruling is a win for states and a major hit to the Trump Administration’s efforts to sabotage the Affordable Care Act. With the court’s decision, the states won the right to defend payments that help millions of Americans access affordable health insurance. As long as the Trump Administration keeps playing politics with the health of our residents, we will be there to defend access to care in Massachusetts and across the country.

As in other cases, the court took note of “accumulating public statements” by the Trump Administration threatening to withdraw from the litigation and eliminate CSRs, and so the states were permitted to intervene to protect the public interest.

Although the ACA requires insurers to provide discounts on cost-sharing (i.e., deductibles, co-pays, co-insurance), CSRs are critical to reimburse the health plans for these discounts, keeping health insurance affordable. This is particularly important for those who are not eligible for premium assistance. Their elimination would drastically increase the price of health insurance and, as a result, the uninsured rate would climb. The states demonstrated to the court that this would present a substantial monetary burden on states. After all, state-funded hospitals must provide emergency care for individuals regardless of their coverage status or ability to pay.

So while the war to maintain the ACA and improve market stability continues, we are reassured by the tireless Massachusetts Attorney General, Maura Healey, whose work helped ensure that consumer advocates will not go down without a fight.

                                                                                                                                                                          - Ben Agatston