News & Perspectives

U.S. Court of Appeals Holds That the Trump Administration Violated the ACA by Withholding Certain Subsidy Payments

19. August 2020 Sam Fish Health

On Friday, August 14, 2020, the U.S. Federal Court of Appeals held that the Trump Administration violated the Affordable Care Act (ACA) when it suddenly stopped paying for subsidies intended to reduce healthcare costs for low-income individuals who buy coverage on the exchanges.

In a separate decision by the same court, it was held that, while the insurers were entitled to the full amount of the subsidies for 2017, the amounts for 2018 should be reduced, since the insurers were able to raise premiums to make up for the loss of subsidies.