NBC News is reporting today that a Federal Appeals Court in Washington, D. C., has ruled that that the Patient Protection and Affordable Care Act, (ObamaCare), as written, only allows insurance subsidies in states that have set up their own exchanges. This ruling invalidated an Internal Revenue Service regulation that allowed subsidies in all 50 states. Thirty-six states did not set up the exchanges required by ObamaCare, so the federal government set up exchanges in those states. The court ruled that the federal government may not pay subsidies for insurance plans in those states.
The article reports:
“Today’s decision reaffirms that the administration cannot rewrite the health law that was passed and it stops the Internal Revenue Service from doing the same,” said Andrew Kloster of the conservative Heritage Foundation. “The statute is clear in the Affordable Care Act that the subsidies are to be directed only to states that elected to set up insurance exchanges.”
This is actually the problem with the law–it has been rewritten as we go along. Mandates have been postponed, the stay-in-your-home provision for the elderly has been dropped altogether, and exemptions have been handed out left and right. It will be interesting to see if another Executive Order promptly makes its appearance.
One of the effects of ObamaCare (intended or otherwise) is the redistribution of wealth–it takes affordable healthcare away from those who already had insurance–some rates have gone up as much as $7,000 or $8,000 per year for people not eligible for subsidies, and provides subsidies for people with lower incomes (without demanding income verification). In one state, people whose incomes were well above the poverty level were eligible for subsidies, but one wonders if those subsidies will decrease after ObamaCare is fully operational.
It will be interesting to see if this decision stands–it will wind up in the Supreme Court.