Judge Blocks Trump Plan to Revoke Obamacare Rule on Medications

(Bloomberg) -

The Trump administration’s effort to let companies opt out of Obamacare requirements that they offer free coverage in their employee health-care plans for medications they oppose on religious or moral grounds, hit a roadblock in a California court on the eve of the new rules taking effect.

U.S. District Judge Haywood Gilliam in Oakland issued a preliminary injunction against the final rules for the new Affordable Care Act exemption on Sunday, though he limited it to the 13 states that sued, plus the District of Columbia.

The decision, which may be appealed, ramps up the culture war triggered by President Donald Trump’s attempt to extend “religious freedom” rights from churches to companies – a move that in 2017 triggered litigation backed by rights groups and Democratic-led states.

“The law couldn’t be clearer – employers have no business interfering in women’s health-care decisions,” California Attorney General Xavier Becerra, who led the state coalition, said in a statement.

The other states affected by the ruling are Connecticut, Delaware, Hawaii, Illinois, Maryland, Minnesota, New York, North Carolina, Rhode Island, Vermont, Virginia, Washington.

“No American should be forced to violate his or her own conscience in order to abide by the laws and regulations governing our health-care system,” Caitlin Oakley, a spokeswoman for the U.S. Department of Health & Human Services, said in an email.

Gilliam said the states hadn’t met the high threshold required for granting a nationwide injunction, despite showing they face “potentially dire public health and fiscal consequences from the implementation of the final rules.” Still, he added that “the court fully recognizes that limiting the scope of this injunction to the Plaintiff States means that women in other states are at risk of losing access to [these medications] when the final rules take effect.”

There is still a chance that a nationwide injunction could be issued in a separate case by Pennsylvania Attorney General Josh Shapiro and his New Jersey counterpart, Gurbir Grewal.

Gilliam set a hearing for Jan. 23.

An interim version of the new rules was previously blocked nationwide by Gilliam and by a Philadelphia judge, though a San Francisco-based appeals court later said Gilliam should have limited the scope of his injunction to the states in California’s coalition. A lawsuit by the Massachusetts attorney general was rejected on the grounds that the state didn’t have standing to sue. That ruling is on appeal.

Haywood’s ruling, for now, blocks the religious and moral exemptions to the Obamacare requirement from taking effect in the California-led group of states while the litigation plays out, potentially heading to trial. The U.S. Supreme Court will probably have the final say on the matter.

Religious organizations are already exempted, but President Trump seeks to roll back the requirement for more categories of employers, including publicly traded companies.

“It is a good day when a court stops this administration from sanctioning discrimination under the guise of religion or morality,” the American Civil Liberties Union said in a statement.