A federal judge yesterday denied a request by California and 18 other states for an emergency ruling requiring the Trump administration to continue subsidizing cost-sharing reductions insurers provide lower-income people who purchase health insurance through the Affordable Care Act’s exchanges. The administration terminated the subsidy payments this month. In denying the states’ request for a preliminary injunction until the court rules on their legal challenge to the administration’s decision, U.S. District Judge Vince Chhabria said the emergency relief “would be counterproductive” because most state regulators have devised responses to the termination of payments “that give millions of lower-income people better health coverage options than they would otherwise have had.” In a friend-of-the-court brief filed Saturday in the case, the AHA, Federation of American Hospitals, Catholic Health Association of the United States, and Association of American Medical Colleges said that ending the cost-sharing subsidies would harm patients’ finances and health, trigger a “death spiral” in the health insurance exchanges, and force hospitals to shoulder an even greater financial burden, making it harder for them to serve their communities. 

Related News Articles

Headline
Centers for Medicare & Medicaid Services Administrator Mehmet Oz, M.D., July 19 visited AtlantiCare health system in New Jersey, making stops at its…
Headline
The Congressional Budget Office today released its estimate of the budgetary effects of the One Big Beautiful Bill Act, as enacted. CBO projects the law will…
Headline
Health Insurance Marketplace insurers will propose a median premium increase of 15% for 2026, according to an analysis of preliminary rate filings published…
Headline
The Centers for Medicare & Medicaid Services July 17 issued two letters to states regarding policies on continuous eligibility and workforce initiatives.…
Headline
Sen. Josh Hawley, R-Mo., July 15 introduced legislation that would repeal some of the Medicaid funding reductions included in the recently enacted One Big…
Chairperson's File
Public
This month Congress enacted the One Big Beautiful Bill Act — a sweeping package that contained many of President Trump’s legislative priorities on taxes,…