Tuesday, July 22, 2014

D.C. Circuit guts ObamaCare: Consumers in federal exchange are ineligible for subsidies

D.C.CircuitgutsObamaCare:Consumersinfederal

D.C. Circuit guts ObamaCare: Consumers in federal exchange are ineligible for subsidies

posted at 10:41 am on July 22, 2014 by Allahpundit

You already know the background here, I hope. If not, read this post and/or this post to catch up. The ObamaCare statute says that federal subsidies to help people pay for their new O-Care health insurance are available to anyone who buys their plan from “an Exchange established by the State.” Thirty-four states declined to build their own exchanges, though, so the White House built a big federal exchange for them instead. That’s Healthcare.gov. Question: If you buy a plan from Healthcare.gov, does that qualify as buying from “an Exchange established by the State”? Or are subsidies reserved exclusively for exchanges built by the individual states, not the feds?

The financial impact of ObamaCare for five million people hangs on six words. Held by the D.C. Circuit: Subsidies apply only to true state exchanges, not Healthcare.gov.

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Plain and simple, if Congress wants to rewrite the law to extend subsidies to federal enrollees, they’re welcome to do it. That’s what legislatures are for. But the law, as written, says what it says, and that’s not the court’s problem.

I want to get this thread up quickly so people can comment, but lots of updates are coming. Stand by.

Update: Another report estimates that 7.3 million people will be affected by 2016 if this stands, to the tune of $36 billion.

Update: Will it stand, though? Good point on procedural next steps here:

Federal appeals courts typically assign three judges to hear a case. This one came out 2-1. The losing party can petition, though, for an “en banc” hearing, in which all judge on the circuit re-hear the case together and issue a new opinion affirming or reversing the previously one. Kapur’s point is that ramming through a few Obama appointees means this case has a better chance than it otherwise would have of being reversed en banc.

After the en banc hearing, there’s only one place left to go. And since the D.C. Circuit is widely regarded as the most influential circuit, odds are that the final step will be taken. You ready for round two on ObamaCare, John Roberts?

Update: Yep.

As Pelosi once famously said, they had to pass the law to find out what’s in it. Now they know.


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