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15 states sue Donald Trump for repealing Obamacare subsidies

October 13, 2017

  donald-trumpYesterday, in what I think was a great move, Donald Trump signed a new Executive Order which would allow small businesses and individuals to pool together to get the cheaper rates which are afforded to larger companies. This potentially gives small businesses and individuals more options in marketplaces where options are becoming more and more limited and would make it easier for people to get insurance across state lines. It is hard for me to see how there could be much opposition to this and to date I have not really heard of any opposition.

  Then last night Donald Trump announced he would end the Obamacare subsidies, if this it upheld it could be the death knell of Obamacare. The President has called these subsidies a “bailout for the insurance companies” and while technically he might be right, without these subsidies the costs will be passed on to the consumers so his portrayal is not 100% accurate in my opinion. Somebody is going to give the insurance companies their money one way or the other…

  While possibly not on solid public relations grounds, Donald Trump appears to be on solid legal grounds. These subsidies were ordered by Barack Obama without Congressional approval and we all know that all appropriations much start with the House of Representatives. This obviously did not happen.

  It was not hard to predict that while his first Executive Order would not face any serious objection or lawsuit that his announcement to end the subsidies would, and now it is being reported that 15 states are suing Donald Trump over this latest announcement. Here is more:

A new multistate lawsuit has been announced to stop President Trump from halting key ObamaCare payments to insurers.

Fifteen states and Washington, D.C., are signing onto the new lawsuit, which will be filed Friday, according to Sarah Lovenheim, a spokeswoman for California Attorney General Xavier Becerra.

On Thursday night, Trump announced he would stop making the payments, which led to an outcry from critics saying he was sabotaging the health care law.

The complaint will seek a temporary restraining order, preliminary injunction and permanent injunction requiring the cost-sharing reduction payments be made.

  I have always been under the impression that Executive Orders and Executive Acts were temporary and could be altered or abolished by Executive Order or Executive Act by a new President, however the DC Court of Appeals (go figure) has already ruled that if Donald Trump tried to do this it could be challenged in court.

  No matter how this plays out I do have to give Donald Trump credit: while the Republicans have played lip service to repealing Obamacare they did nothing when they actually had the opportunity while Donald Trump appears prepared to make good on a campaign promise despite the political fallout and that is a refreshing change.

malo periculosam libertatem quam quietum servitium

14 Comments leave one →
  1. Fergus permalink
    October 13, 2017 8:22 pm

    Best of luck to them. The lawyers will win but the taxpayers of those states, poor fools.

    Liked by 2 people

  2. October 13, 2017 8:41 pm

    Just like the travel ban EO this will also be blocked. If Congress appropriated the funds to pay the subsidies then the President does not have the power to impound them. Nixon tried this and Congress stripped the President of this power by passing a law. Trump would have to have the law declared unconstitutional.

    Liked by 2 people

    • October 14, 2017 7:24 am

      I am sure there will be a judge in the next day or two who comes forward and blocks this. From what I understand the Congress did not appropriate the money but who knows, it was probably slipped in there somewhere.


  3. Brittius permalink
    October 14, 2017 3:32 am

    Reblogged this on Brittius.

    Liked by 1 person

  4. kdocburgess permalink
    October 14, 2017 10:26 am

    Reblogged this on Deplorables Seeking Justice-DSJ and commented:

    Liked by 1 person

  5. October 14, 2017 7:28 pm

    I’ve always said the death spiral prediction was self fulfilling. Anywho, funny how nobody who criticized using EO to create law by Fiat is making noise about this EO. IOIYAR. 🤔

    Liked by 1 person

    • October 15, 2017 6:24 am

      It is interesting that nobody seems to care about the EO any more. I suppose they would use they old “they did it too” defense. Personally I have spoken out against it in other posts and I believe it is time to get back to letting the Congress do its job.
      I don’t believe this one is a problem simply because it was reversing another EO and I have always been under the impression that EOs could be reversed by incoming Presidents.Politically, however, I believe this one is going to turn into a nightmare for Trump and the Republicans.


      • October 16, 2017 5:06 pm

        Oh yeah, if the experts are correct, we’re in for a world of hurt when the insurance companies extract their pound of flesh for being stiffed on their subsidies.

        Actually, I was referring to the other EO (I wasn’t clear) that creates make changes to ACA. I fail to see how that is any different from Obama’s DACA and DAPA EO.

        Liked by 1 person

      • October 16, 2017 6:53 pm

        I agree. While Trump is saying he is ending a bailout to the insurance companies we all know the costs will be passed on to the consumers and that is why I think this is a political nightmare for the President.



  1. Hoping to bolster tax reform talks Donald Trump flip-flops on Obamacare subsidies | America's Watchtower

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