Sacramento, California - California Attorney General Xavier Becerra was Wednesday granted a motion to dismiss without prejudice in California v. Trump, a case which was initiated after the Trump Administration’s abrupt decision in October 2017 to stop healthcare subsidy payments required by the Affordable Care Act (ACA). These mandatory cost-sharing reduction payments, also known as CSRs, help lower out-of-pocket costs for individuals with incomes up to $30,350 and families of four with incomes up to $62,750.
In response to the Trump Administration’s October 2017 decision, state regulators in many states, including California, were able absorb the increased costs within the ACA’s silver plans by providing correspondingly higher premium tax credits to mitigate the damage imposed by the Trump Administration’s reckless decision to abruptly end cost-sharing subsidies for consumers.
“In California, we are committed to protecting affordable, quality healthcare for all Americans – no matter what steps the Trump Administration takes to sabotage the Affordable Care Act,” said Attorney General Becerra. “Today’s decision to close our cost-sharing reduction litigation for now is the end of a battle, but not the war. Today’s decision is an acknowledgement of the determined and strategic action by States to mitigate the Trump Administration’s irresponsible actions and continue providing affordable care under the ACA. More importantly, this decision leaves the door open for California and its coalition to continue fighting if and when the Trump Administration takes action to dismantle the states’ alternative approach to maintaining Americans’ affordable health plans. We will continue to monitor the Administration’s actions and stand ready to take any legal action necessary to safeguard Americans’ healthcare.”
On Monday, July 16, 2018, California and its coalition of 18 states and the District of Columbia filed a motion to stay the proceeding or dismiss without prejudice in California v. Trump. Today Judge Chhabria granted the unopposed request by the plaintiffs to dismiss the case without prejudice. Dismissal without prejudice leaves the way clear for a similar suit to be filed again, if necessary, in light of future developments.
