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Two Hours After A Court Strikes Down Obamacare Subsidies, Another Appeals Court Upholds Them
A little after 10am Tuesday morning, two Republican judges on the United States Court of Appeals for the District of Columbia Circuit ordered much of the Affordable Care Act defunded. Just two hours later, another federal appeals court, the Fourth Circuit, issued a unanimous opinion upholding the same subsidies that were struck down in the DC Circuit’s order.
As we explained this morning, both cases hinge upon a glorified typo in the Affordable Care Act. Obamacare gives states the option to run a health insurance exchange selling coverage to their residents, or they may elect to have the federal government run this exchange. If read in isolation, one line of the Affordable Care Act suggests that only “an Exchange established by the State” can offer subsidies to help people pay for health insurance in the exchange. The DC Circuit’s opinion relied on that line to conclude that federally-run exchange subsidies must be defunded.
The plaintiff in the DC case is a woman who worked in the Bush Administration in his Office of Faith and Community. Apparently, nothing says “love thy neighbor” like litigating to deny health care to people. The plaintiff in the 4th Circuit case is a man in West Virginia angry that his freedumbs were taken away when he was forced to get health insurance at a cost of $21 per year.
The entire DC Circuit has been asked to rule on the case and the split on that court is 7-4 Democratic appointees to Republican appointees.
How The White House Could Still Save Obamacare Even If It Loses In Court
The D.C. federal appeals court initially appeared to throw a stunning legal blow to Obamacare with its decision to invalidate financial subsidies offered through HealthCare.gov. The loss of those subsidies could affect 4.7 million people and send premiums skyrocketing. But the ruling was quickly tempered by a separate appeals court ruling that upheld the subsidies in another case.
[Experts told TPM] that the mechanics of how the workaround could be done aren’t completely clear, but the crux would be this: States could continue using HealthCare.gov but pass a bill or otherwise indicate that the website functions as their state-based insurance exchange.
[Additionally, ] HHS Secretary Sylvia Mathews Burwell “could make it much easier for a second generation of state exchanges to be established now that the federal government has a viable IT platform for both state and federal exchanges to use.”
Or we could win back Congress and pass a fix to the technical language of the law.
More …
If Obamacare Opponents Win Their Latest Lawsuit, Here’s Who Loses
Here’s what will happen to the insurance industry if Halbig wins:
– Almost 90 percent of Obamacare enrollees in states with federal marketplaces will lose their tax credits.
– Premiums in those states could increase by more than 75 percent
– The average person with the cheapest plan on a federal marketplace would have to spend a quarter of their income on insurance.
– The number of uninsured Americans would increase by about 6.5 million.
– Obamacare premiums as a whole would be sent into a “death spiral.”
Charlie Pierce: Affordable Chaos
Let us spend a few minutes in the real world, shall we? Millions of our fellow citizens have spent the last several months with a great weight lifted from their shoulders. Every ache and sudden twinge no longer felt like it could be the first step toward personal ruin. They have been able to look at their sleeping children without a familiar knot in their guts. They have been able to pursue happiness, like all of us have a right to do so, without feeling like they’re running in leg shackles. All of these people have been tossed into uncertainty — again — because their government has been rendered dysfunctional by a political philosophy of nihilistic vandalism, which is being judged now by a judiciary fully politicized through a long game that has extended over decades. […]
Simply put, there is almost an entire half of our political system that believes that a great number of Americans simply do not matter enough to make it economically feasible to help them stay healthy. They do not count. It does not matter how many of them die preventable deaths. It is better for the country, this half of the political system believes, that they grow sick and bankrupt themselves.
Looking for the guys who say America's a Christian nation? They're taking a break from yelling at kid refugees to rip away health insurance.
— LOLGOP (@LOLGOP) July 22, 2014
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