How the Supreme Court’s Latest Case Could Totally Cripple ObamaCare

Date: 

Monday, November 10, 2014
by Matthew Clark | LifeNews.com | 11/7/14 5:04 PM
 
 
The Supreme Court announced today that it would hear a major ObamaCare case that could deal a
crippling blow to President Obama’s prized pro-abortion health care law.
As the Wall Street Journal reports:
The Supreme Court on Friday agreed to review whether
consumers can receive subsidies through the Affordable Care Act for insurance
purchased through a federal exchange, taking up a key
piece of the Obama administration’s healthcare law.
The move puts before the high court one of several cases over the subsidies. The justices
accepted a challenge from Virginia that the U.S. Court of Appeals for the Fourth Circuit in
Richmond, Va., had rejected. The Fourth Circuit in July found in favor of an Internal Revenue
Service rule extending tax credits to lower-income Americans who purchase coverage through
the federal insurance exchange.
 
As my ACLJ colleague David French explained earlier this year:
ObamaCare as passed by Congress stated quite clearly that IRS tax credits (better known as
ObamaCare “subsidies”) are available to subsidize insurance policies purchased through state
ObamaCare exchanges. It does not state that subsidies are available for insurance purchased
through the federal exchange.
After 36 states refused to create state exchanges, an action that had the effect of limiting the
law’s individual insurance mandate and employer mandate, the IRS decided to simply make
up a new regulation – without any statutory authority – that extended subsidies to insurance
purchased on the federal exchange and thereby dramatically expanded the individual and
employer mandates.
 
Here’s how the IRS rule expanded ObamaCare:
“This broader [IRS] interpretation has major ramifications. By making credits more widely
available, the IRS Rule gives the individual and employer mandates—key provisions of the
ACA—broader effect than they would have if credits were limited to state-established
Exchanges. The individual mandate requires individuals to maintain “minimum essential
coverage” and, in general, enforces that requirement with a penalty. See 26 U.S.C. §
5000A(a)-(b). The penalty does not apply, however, to individuals for whom the annual cost of
the cheapest available coverage, less any tax credits, would exceed eight percent of their
projected household income. See id. § 5000A(e)(1)(A)-(B). By some estimates, credits will
determine on which side of the eight-percent threshold millions of individuals fall. See Br. of
Economic Scholars in Support of Appellees 18. Thus, by making tax credits available in the 36
states with federal Exchanges, the IRS Rule significantly increases the number of people who
must purchase health insurance or face a penalty.”
 
Put simply, if Congress had intended for subsidies to be made available through federal
exchanges, it should have said so.
 
He’s exactly right, and now the Supreme Court is going to take a very careful look.
The fact is if the subsidies don’t stand – the major funding mechanism that made it even remotely possible
for many families to comply with the individual mandate – then ObamaCare would likely collapse on itself.
We’ve always said ObamaCare was flawed and couldn’t sustain itself.
With a newly elected pro-life Senate, a major challenge to ObamaCare subsidies at the Supreme Court,
and the news that these subsidies are directly paying for abortion, the President’s prized pro-abortion
reconfiguration of America’s health care landscape may be in serious jeopardy.