Obamacare Subsidies Ruled Illegal!

 

After holding us in suspense for almost two weeks beyond the expected date for the decision, a panel of the D.C. Circuit Court of Appeals has ruled on Halbig v. Sebelius. In a 2-1 ruling, the court held that the text of the Affordable Care Act only allows subsidies for insurance policies purchased through state established exchanges. Thus, the subsidies currently being paid to those who purchased through the federal exchange (the overwhelming majority of all policies) are illegal.

This is a really big deal. Though the ruling will certainly be appealed, first to an en banc panel of the D.C. Circuit and then probably to the Supreme Court, Obamacare will essentially collapse if the panel’s ruling is upheld. Stay tuned.

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  1. Mark Coolidge
    Mark
    @GumbyMark

    From NRO:

    Senate majority leader Harry Reid (D., Nev.) believes that a D.C. Circuit Court panel’s invalidation of an IRS regulation that governs Obamacare subsidies vindicates his decision to move forward with the nuclear option, a procedural move that made it easier to confirm President Obama’s judicial nominees.

    “I think if you look at simple math, it does,” Reid told reporters Tuesday afternoon.

    Because of the nuclear option — when Reid broke the Senate rules to change the Senate rules pertaining to the filibuster of judicial nominees — Senate Republicans were unable to block three of Obama’s nominees to the D.C. Circuit Court of Appeals. As a result, Democrats have a 7–4 majority on the court.

    The Justice Department is going to ask the full court to overturn the 2–1 ruling, issued Tuesday morning, which held that people who enrolled in Obamacare through the federal exchange are not eligible for the federal subsidies designed to make Obamacare cost less for individuals.

    • #31
  2. hawk@haakondahl.com Member
    hawk@haakondahl.com
    @BallDiamondBall

    Salvatore Padula:

    Ball Diamond Ball:

    I’m with those who predict the Court will shank this, in spirit if not in detail. This is the worst sort of victory. All this will do is chunk out little pieces of it to be fixed through (shocker!) innovative interpretations of what passes for law in this post-Constitutional democracy. This administration does not fear laws or judges. This is the pathetic state we have reached, glad to win crumbs on technicalities because we refused to fight on principle. This misbegotten law and the filthy authorial ruling that cemented it in place will be with us for a long time. Perhaps to the end.

    This decision did not “chuck out a little piece” of the ACA. If policies purchased on the federal exchange are not subsidized Obamacare is literally doomed.

     What do you think it will take to get Boehner  and a handful of stooges to whip another democrat vote on the “Affordable Healthcare Responsibility Act” to amend the law?  Well, it *is* the law of the land, and if it doesn’t work, then the will of the people is being subverted by technicalities…  And this goes double for the Court.

    • #32
  3. hawk@haakondahl.com Member
    hawk@haakondahl.com
    @BallDiamondBall

    Note that nothing in the law has been found to conflict with the Constitution or any other law.  It just seems that the law itself is so poorly constructed that it can’t stand up without a little judicial re-write from time to time, which we have seen will come.

    • #33
  4. user_653084 Inactive
    user_653084
    @SalvatorePadula

    Ball Diamond Ball: What do you think it will take to get Boehner and a handful of stooges to whip another democrat vote on the “Affordable Healthcare Responsibility Act” to amend the law?

     I don’t think that is at all likely to happen. If you’d like, I’d be happy to wager that if the D.C. Circuit’s decision is upheld no Republican will vote for a statutory change to save the subsidy.

    • #34
  5. hawk@haakondahl.com Member
    hawk@haakondahl.com
    @BallDiamondBall

    Salvatore Padula:

    Ball Diamond Ball: What do you think it will take to get Boehner and a handful of stooges to whip another democrat vote on the “Affordable Healthcare Responsibility Act” to amend the law?

    I don’t think that is at all likely to happen. If you’d like, I’d be happy to wager that if the D.C. Circuit’s decision is upheld no Republican will vote for a statutory change to save the subsidy.

     No need for side bets.  I’m all in.

    • #35
  6. user_653084 Inactive
    user_653084
    @SalvatorePadula

    Ball Diamond Ball:

    Salvatore Padula:

    Ball Diamond Ball: What do you think it will take to get Boehner and a handful of stooges to whip another democrat vote on the “Affordable Healthcare Responsibility Act” to amend the law?

    I don’t think that is at all likely to happen. If you’d like, I’d be happy to wager that if the D.C. Circuit’s decision is upheld no Republican will vote for a statutory change to save the subsidy.

    No need for side bets. I’m all in.

    Seriously, you’ve made a pretty bold statement. Put your money (or whatever else you’d care to bet) where your mouth is.

    • #36
  7. hawk@haakondahl.com Member
    hawk@haakondahl.com
    @BallDiamondBall

    Salvatore Padula:

    Ball Diamond Ball:

    Salvatore Padula:

    Ball Diamond Ball: What do you think it will take to get Boehner and a handful of stooges to whip another democrat vote on the “Affordable Healthcare Responsibility Act” to amend the law?

    I don’t think that is at all likely to happen. If you’d like, I’d be happy to wager that if the D.C. Circuit’s decision is upheld no Republican will vote for a statutory change to save the subsidy.

    No need for side bets. I’m all in.

    Seriously, you’ve made a pretty bold statement. Put your money (or whatever else you’d care to bet) where your mouth is.

     If you feel I lack the courage of my convictions because I will not be hectored into a wager, you’re making a pretty bold statement of your own.   I do not hope to be right, but I do not share your optimism.

    • #37
  8. user_653084 Inactive
    user_653084
    @SalvatorePadula

    BDB- It is precisely because you strike me as someone who has the courage of his conviction that I’m a bit surprised that you’re unwilling to accept a wager on this matter. I’m not trying to hector you into anything, but this is exactly the sort of thing which lends itself to a friendly bet. (I’m not singling you out. I have two bottles of Stag’s Leap cabernet riding on the outcome of the midterm elections in a wager with another member.)

    If you’re unwilling that’s fine, but this seems like a win-win situation for you. If you lose it will be because Republicans in Congress did what you wanted them to do. If you win the Republic may be doomed, but at least you’ll have the benefit of your winnings (slight comfort though they may be).

    • #38
  9. rico Inactive
    rico
    @rico

    Salvatore Padula:

    BDB- It is precisely because you strike me as someone who has the courage of his conviction that I’m a bit surprised that you’re unwilling to accept a wager on this matter. I’m not trying to hector you into anything, but this is exactly the sort of thing which lends itself to a friendly bet. (I’m not singling you out. I have two bottles of Stag’s Leap cabernet riding on the outcome of the midterm elections in a wager with another member.)

    If you’re unwilling that’s fine, but this seems like a win-win situation for you. If you lose it will be because Republicans in Congress did what you wanted them to do. If you win the Republic may be doomed, but at least you’ll have the benefit of your winnings (slight comfort though they may be).

     Sal, poised menacingly for the kill…

    • #39
  10. Roberto Inactive
    Roberto
    @Roberto

    Mark:

    Salvatore Padula:

    Spin:

    I sometimes like to read what the other side has to say. What are your thoughts?

    That was not the best defense of the Administration’s interpretation of the law I’ve encountered. I think the D.C Circuit’s opinion correct about the ACA unambiguously prohibiting subsidy for the federal exchange, but the strongest counterargument is that the statute is ambiguous and the agency is entitled to Chevron deference. The New Republic article seems to argue that federal subsidies are unambiguously allowed. Even the government didn’t seriously press that point.

    I agree. Apparently Chevron deference was important in the 4th Circuit decision. Of course, Chevron itself was wrongly decided but that’s a discussion for another day.

    Chevron deference, truly the curse of our times. There have been so many incompetently decided Supreme Court decisions but this one truly deserves its own special alter for demonstrating the foolishness of the bench. 

    • #40
  11. Mike H Inactive
    Mike H
    @MikeH

    Sal, I absolutely love that you are placing bets with members who make predictions. It makes me even more likely to appreciate your foreign policy judgement.

    • #41
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