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October 13, 2017


Federal Administration's Abrupt Decision to Halt Healthcare Subsidies Under the Affordable Care Act will Increase Costs for Illinois Residents

Chicago — Attorney General Lisa Madigan, along with 18 other attorneys general, today filed a lawsuit in the Northern District of California against the federal administration's abrupt decision to stop making healthcare subsidy payments required by the Affordable Care Act. The attorneys general argue the severe action violates the law, putting health coverage for over 6 million Americans at risk and leading to higher costs.

The Affordable Care Act's mandatory cost-sharing reduction (CSR) payments help working families access more affordable healthcare coverage by ensuring that individuals with incomes between $11,880 and $29,700 can enroll in plans with lower deductibles, copayments or coinsurance, reducing their out-of-pocket costs. In Illinois, this includes about 175,000 residents who received, on average, $933 in reduced out of pocket costs annually. According to one estimate, this amounted to $163 million in CSR subsidies that benefited Illinois residents last year.

"Ripping healthcare coverage away from millions of people who need it most is not just illegal but unjust," Madigan said. "I will keep fighting this reckless action to ensure Illinois residents receive the healthcare federal law provides."

Joining Madigan in filing today's lawsuit are the attorneys general from: California, Connecticut, Delaware, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and the District of Columbia.

A copy of the complaint can be found here.


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