Federal judge denies preliminary injunction in cost-sharing subsidies case

Oct 26, 2017 - 09:57 AM

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
CMS issues proposed provider tax rule
The Centers for Medicare & Medicaid Services today released a proposed rule that would update Medicaid provider tax policies included in the July 2025…
Headline
AHA comments to CMS on proposed rule covering Medicaid supplemental payments
The AHA provided comments July 21 to the Centers for Medicare & Medicaid Services on its proposed rule to modify policies governing Medicaid…
Headline
District court pauses 8 provisions from 2027 notice of benefit and payment parameters final rule
The U.S. District Court for the District of Maryland July 16 enjoined eight provisions from the Centers for Medicare & Medicaid Services’ 2027 notice of…
Headline
Draft guidance released for 2028 cycle of Medicare drug price negotiations 
The Centers for Medicare & Medicaid Services July 16 released draft guidance for the 2028 cycle of negotiations under the Medicare Drug Price Negotiation…
Headline
DHS finalizes changes to public charge rule 
The Department of Homeland Security July 16 finalized its proposal to rescind the public charge ground of inadmissibility regulations issued in 2022. Among…
Headline
AHA responds to CMS on potential modifications to ACA’s Essential Health Benefits
The AHA July 15 responded to a request for information from the Centers for Medicare & Medicaid Services on the Affordable Care Act’s Essential Health…