A federal judge on Wednesday did not rule in 19 states’ favor to stop the Trump administration from ending the cost-sharing reduction (CSR) subsidies. The CSRs are paid to insurance companies to help lower health insurance costs for low-income Americans.
U.S. District Judge Chhabria is an Obama appointee, but in his statements he said the Trump administration provided a stronger argument and cited state efforts in preparing for the termination for months as evidence better coverage options can exist. The states were requesting a preliminary injunction on Trump’s executive order. In Chhabria’s written opinion, he stated while the ACA language appropriated money for the premium tax credits, it did not appropriate money for the CSRs.
The move comes at a time when open enrollment looms, creating issues for insurers to refile 2018 rates to address the increased costs for enrollees.