Congress is busily making plans for legislative action should the latest challenge to Obamacare prevail in the Supreme Court.
On Wednesday, the justices will hear arguments in King v. Burwell to decide whether the IRS had the authority to write a rule authorizing subsidies to go to millions of people in the 37 states with federal exchanges.
The plaintiffs say the language of the law is clear: Subsidies are allowed in “an Exchange established by the State under [section] 1311of the Patient Protection and Affordable Care Act.” It doesn’t just say this once, but nine times in various linguistic forms.
That is the point that MIT economist Jonathan Gruber made when he famously said: “If you’re a state, and you don’t set up an exchange, that means your citizens don’t get their tax credits.”
The Obama Administration’s abuse of executive power—dispensing with its duty to faithfully execute statutes to become a law maker unto itself—has become the most consequential dispute across the three branches of government. The Supreme Court rejoins this debate on Wednesday with oral arguments in the challenge to the White House’s illegal Affordable Care Act subsidies.
By our count at the Galen Institute, more than 49 significant changes already have been made to the Patient Protection and Affordable Care Act: at least 30 that President Obama has made unilaterally, 17 that Congress has passed and the president has signed, and 2 by the Supreme Court.
As we approach oral argument this week at the Supreme Court in the King v. Burwell case, critics of the latest legal challenge to an Affordable Care Act provision are predicting a disaster of biblical proportions if the Court overturns an IRS rule and declares as illegal the current insurance subsidies for coverage in health exchanges established by the federal government.
This endless loop of major media reporting seems to be taking its cues from the original Ghostbusters movie script. “Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! The dead rising from the grave! Human sacrifice! Dogs and cats, living together! Mass hysteria!” But only the “mass hysteria” part may be accurate for some of those news and commentary outlets.
In King v. Burwell, four Virginia residents are a challenging an IRS Obamacare rule in the Supreme Court. While the case involves only a handful of plaintiffs, it is really about the millions of Americans who are victims of Obamacare’s mandates and penalties.
Like the King plaintiffs, millions are harmed by Obamacare’s individual mandate, which forces them to either buy insurance that they don’t want or to pay a tax penalty. But the IRS rule also has devastating consequences for countless other Americans and their families.
OUR VIEW: If Obamacare plaintiffs win, millions lose
On March 4, 2015, the Supreme Court will hear oral arguments in King v. Burwell. The key issue in this case is how the government may provide subsidies to people buying health insurance through government exchanges created by the Affordable Care Act, or ObamaCare. This case could also determine whether millions of Americans are free from the law’s onerous mandates and fines.
There are effectively two categories of exchanges: those “Established by a State” (described in Section 1311 of the law’s text) and the federal exchange (described in Section 1321). The statute authorizes the federal government to provide subsidies to enrollees in the state-established exchanges, but not the federal exchange.
When it became clear that many states — today as many as 37 — would not establish their own exchanges, the IRS issued a rule in 2012 allowing those who purchase insurance through the federal exchange to also receive subsidies. Plaintiffs in King v. Burwell claim the IRS acted illegally and did not have authority to do this.
Ultimately, it is up to the Court to declare that the Administration must uphold the law as written by Congress, not to refashion the law. A ruling in favor of petitioners in King could free millions of people from the law’s most onerous provisions, and could present a great opportunity to move past ObamaCare’s political stalemate and to seek a better path forward for healthcare policy.
The Department of Health and Human Services is prescribing an extra dose of two of ObamaCare’s most bitter medicines for 2016.
The maximum deductible will rise to $6,850, up 3.8% from this year’s $6,600 ceiling and about 8% above 2014’s $6,350 limit.
Meanwhile, the penalty for employers that don’t offer coverage to most full-timers will rise a like amount to $2,160 per employee, up from this year’s $2,080 fine. The original $2,000 fine never applied, because it was bumped up a notch after a year’s delay.
The Obama administration revealed Friday that it sent about 800,000 HealthCare.gov customers a tax form containing the wrong information, and asked them to hold off on filing their 2014 taxes.
The self-inflicted bungle follows weeks of administration officials touting a successful enrollment season — one that saw far fewer technical glitches than the rocky launch in late 2013.
About 11.4 million people signed up this season. But the errors in tax information mean that nearly 1 million people may have to wait longer to get their tax refunds this year.
As the SCOTUS oral arguments in King v. Burwell draw near, the cacophony from liberal outlets is nearly deafening. The plaintiffs’ position is “absurd ,” they cry. Congress “never contemplated withholding premium subsidies” in noncooperative states. Even the Obama administration argued that “it would have been perverse for Senators concerned about federalism to insist on pressuring States to participate in the implementation of a federal statute.”
Perverse? Jonathan Gruber (whose position on the issue is “complicated”) is equally disdainful, calling the challengers’ stance “nutty,” “stupid,” and a “screwy interpretation” of the law.
Really? Were Obamacare architects incapable of using “sticks” masquerading as “carrots” to coerce states into setting up Exchanges?
DANVILLE (KPIX 5) – Tens of thousands of people who buy their health insurance through Covered California will get an unpleasant surprise when they file taxes this year.
Stacy Scoggins gets plenty of mail from Covered California, but the one tax form the agency was required to send her by February 2nd still hasn’t arrived.
“After being on hold for 59 minutes, they told me that the 1095-A was never generated,” Scoggins told KPIX 5 ConsumerWatch.
She’s talking about the 1095-A form, a document required for enrollees to file their tax returns. It’s a problem, for the recent widow who desperately needs to file now.