17,000 Rhode Islanders Could Lose Health Insurance: Governor

PROVIDENCE, RI — Gov. Gina Raimondo wants Rhode Islanders to call the White House and object to President Trump's decision to cut government health care subsidies. Meanwhile, Atty. Gen. Peter Kilmartin's office said, Rhode Island will join 15 states and the District of Columbia in a lawsuit seeking a temporary restraining order to block the Trump administration's attempt to rollback the federal government's payments.

The flap Friday followed a late Thursday night statement by the White House to cut payments the federal government makes to states to keep health care costs down for certain low-income residents.

It could mean Rhode Islanders would lose health coverage or have to pay more to keep it, Raimondo said.

The White House says the continued payments would be illegal.

"Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare. In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments," the White House said in a statement released just before 11 p.m. Thursday.

The statement continued: "The United States House of Representatives sued the previous administration in Federal court for making these payments without such an appropriation, and the court agreed that the payments were not lawful. The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system. Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people."

So far, however, Congress has not repealed or replaced Obamacare.

Kilmartin estimated 16,000 Rhode Islanders receive some type of subsidies under Obamacare, as the Affordable Care Act is popularly known.

"The Affordable Care Act’s mandatory cost-sharing reduction payments help working families access more affordable healthcare coverage by helping individuals with incomes between $11,880 and $29,700 enroll in plans with lower deductibles, copayments or coinsurance, reducing their out-of-pocket costs. There are an estimated 16,000 Rhode Islanders who receive subsidies under the Affordable Care Act," his office said.

“Whether you agree or disagree with the subsidies, there is still a moral obligation to address the issue so as not to hurt individuals." Kilmartin said. "It should be addressed through legislative action not by withholding payment in an extortion-like attempt to get your way with Congress. This is an extremely spiteful move by the president to play hard ball politics at the expense of millions of hard working Americans who will struggle to pay for health insurance or may not be able to afford it at all.”

Raimondo decried "the President’s cruel, immoral and unnecessary actions" in her weekly video address on Facebook.