October 13, 2017 / 5:40 PM / in 10 days

U.S. states to file new suit challenging Trump healthcare subsidy cut

WASHINGTON (Reuters) - A coalition of U.S. states will file a new lawsuit challenging President Donald Trump’s plan to end Obamacare subsidies to health insurers that help low-income people pay out-of-pocket medical expenses, a source in the New York attorney general’s Office said on Friday.

U.S. President Donald Trump smiles after signing an Executive Order to make it easier for Americans to buy bare-bone health insurance plans and circumvent Obamacare rules at the White House in Washington, U.S., October 12, 2017. REUTERS/Kevin Lamarque

The new lawsuit would be separate from an existing case currently pending before an appeals court in Washington in which 16 Democratic state attorneys general are defending the legality of the payments. New York Attorney General Eric Schneiderman, a Democrat, is due to announce details of his plans later on Friday.

Reporting by Lawrence Hurley; Editing by Will Dunham

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