California Sues to Restore Illegal Obamacare Subsidies

Oct 21, 2017

California’s Attorney General Xavier Becerra asked the U.S. Court of Appeals in D.C. to issue a restraining order against the Trump administration and force it to restore unconstitutional insurance subsidies. Congress never authorized the payment of subsidies, but the Obama administration paid them anyway. Republicans in Congress sued Obama to stop the payments. A lower court agreed the subsidies were illegal. Currently there is a bi-partisan effort in the Senate to provide money for the subsidies through legislation. President Trump stopped the payment of the subsidies last week. The action has made the insurance market even more chaotic. “California’s state health insurance agency reacted by first announcing a surcharge of 12.4 percent on top of the 12.9 percent increase already authorized for Covered California’s popular “silver plan.” Obamacare was sold to voters as a way to cut insurance premiums by as much as $2,500 per family. However, because of all the mandates in the legislation, premiums have risen 68 percent between 2010 and 2015.