Posted by Tina
A Court ruling early this morning delivers a blow to Obamacare and subjects approximately 8 million people to insurance rate increases. In a two to one decision the U.S. Court of Appeals for the District of Columbia struck down an IRS decision to allow subsidies in those states that did not create their own exchanges. The case was brought by a group of small business owners that believed the law only authorized subsidies for people who buy insurance through markets established by the states, not by the federal government. Four words in the ACA are at the heart of the case. The reads that tax credits are available to people who enroll through an exchange “established by the state” :
In Tuesday’s ruling, two judges appointed by Republican presidents voted against the administration’s interpretation of the law while one appointed by a Democratic president dissented. The Obama spokesman said the administration would seek a hearing by the full 11-judge court. The court has a majority of judges appointed by Democratic presidents, including four appointed by Obama.
The majority opinion concluded that the law, as written, “unambiguously” restricts subsides to consumers in exchanges established by a state. That would invalidate an Internal Revenue Service regulation that tried to sort out confusing wording in the law by concluding that Congress intended for consumers in all 50 states to have subsidized coverage.
The Obama administrations has said the subsidies will continue as it appeals the decision. Some pundits believe this case will go to the Supreme Court.