The DC Circuit
Court recently handed down a 2 to 1 decision in a case entitled Halbig v
Burwell. That decision sent shock waves through the Beltway because it ruled
that anyone who receives health care through an exchange established by the
Federal Government and not by a state is not eligible for and should not receive
a Federal subsidy in the form of a tax credit or other relief. "Section 36B plainly makes subsidies available in the Exchanges
established by states," wrote Judge Thomas Griffith, who was joined in the
majority decision by Senior Circuit Judge Raymond
Randolph.
The ACA was purposely designed to make the states the portals
whereby "ObamaCare" was delivered. Confining the subsidies to qualified
individuals who purchased their health insurance through a state created
"Marketplace " was a deliberate effort to create incentives for the states to
participate, as those who conceived and wrote the law intended. The language is
as the court noted, plain and unambiguous leaving little to no confusion as to
its intent.
36 states however, refused to
establish an exchange thereby requiring the Federal government to step in and
create a Federal Exchange. As a result, 4.7 million Americans who enrolled
through the Federal exchange and who have been receiving subsidies due to an IRS
ruling which turned the plain language of the statute on its head, may down the
road lose this assistance. This loss is estimated to increase
the cost of their coverage by a factor times four or greater and would gut
"ObamaCare" to the
bone.