Federal Judge Rules Against Obamacare Subsidies

by User Not Found | Oct 01, 2014
In a legal setback for the Obama administration, a federal judge in Oklahoma recently ruled that people in states that rely on the federal insurance exchange are not eligible for Obamacare premium subsidies to help them pay for coverage.
In a legal setback for the Obama administration, a federal judge in Oklahoma recently ruled that people in states that rely on the federal insurance exchange are not eligible for Obamacare premium subsidies to help them pay for coverage. U.S. District Judge Ronald White, a George W. Bush appointee, invalidated an Internal Revenue Service rule interpreting the Patient Protection and Affordable Care Act to allow the premium tax credits in states that have not established their own exchange. “The court holds that the IRS rule is arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law,” White wrote. In his ruling, White rejected the administration's argument that striking down the subsidies would cripple the entire healthcare reform law. “Congress is free to amend the ACA to provide for tax credits in both state and federal exchanges, if that is the legislative will,” he wrote. The Oklahoma court is the first U.S. District Court to rule that the language of the Affordable Care Act does not allow subsidies in states that have not established their own marketplaces. Experts say the issue may go up to the U.S. Supreme Court, and the outcome will be critical to the fate of the healthcare reform law. Without the subsidies in the 36 states that use the federal exchange, millions of people likely would lose their coverage and the law's insurance reforms would unravel.
Joe Calandra CMO, Midwest Imaging Professionals
Joe Calandra - CMO, Midwest Imaging Professionals
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