A nonprofit health insurance co-op in Maine is suing the Trump administration over the administration's halting of cost sharing reduction payments that the Obama administration had been making to insurers that provided Affordable Care Act plans.

Maine Community Health Options seeks $5.6 billion in CSR payments that it would have received in 2017 if the federal government hadn't announced that it was ending the program in October.

CSR payments were one of the two types of subsidies that the federal government used to lower the cost of ACA plans for low-income individuals. While the majority of ACA customers qualified for tax credits that helped them afford plans, a large percentage also qualified for further discounts on premiums, co-pays and deductibles that were funded by CSRs, which were paid directly to insurers by the Department of Health and Human Services.

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