Illinois joins lawsuit as insurers brace for end of Obamacare subsidies

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On Thursday, the administration said the federal government will stop making so-called cost-sharing reduction payments to insurers. Those payments compensate insurers for reducing deductible and copay costs for lower-income consumers who buy insurance on the exchange. Eighteen states, including Illinois, and the District of Columbia filed a lawsuit in federal court in California on Friday over the decision to end subsidy payments. In Illinois, more than 350,000 people are enrolled in health insurance through the exchange, and about 175,000 of those consumers benefit from cost-sharing reductions.[See Illinois Attorney General’s press release.]