U.S. District Judge Vince Chhabria with the Northern District of California in San Francisco will preside over a hearing Monday about the subsidies, according to the report.
President Donald Trump announced Oct. 12 his administration would end CSR payments, which help insurers selling plans on the ACA exchanges subsidize the cost of coverage for low-income Americans. At the time, the administration said, “Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare. In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments.”
Eighteen states and the District of Columbia sued the administration following the announcement. Now they are asking Judge Chhabria to block the administration’s decision, claiming ending the payments could have deep effects on the insurance markets, according to the report.
The DOJ said Judge Chhabria should at least transfer the case to the Washington, D.C. federal court that previously ruled federal lawmakers had not appropriated the money for the subsidies, according to Reuters. The publication notes either side could appeal a ruling from Judge Chhabria if the case stays in his court.
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