Federal appeals court strikes blow against ObamaCare subsidies

by Elise Viebeck, The Hill
July 22, 2014


A federal appeals court on Tuesday struck down one of the pillars of ObamaCare, ruling that the law’s premium subsidies are invalid in more than two-dozen states.

The D.C. Circuit Court of Appeals said the Affordable Care Act does not permit the IRS to distribute premium subsidies in the federal ObamaCare exchange, meaning those consumers must bear the full cost of their insurance.

The 2-1 decision by the three-judge panel in Halbig v. Burwell sets up a major legal showdown that conservatives believe could deal a fatal blow to President Obama’s healthcare law.
The government is expected to appeal the ruling to the full D.C. Circuit, but even if the administration triumphs there, the case appears destined for the Supreme Court.

The appeals court’s decision tossed out the ObamaCare subsidies on the grounds that the statutory language of the Affordable Care Act does not explicitly allow enrollees on the federal exchanges to receive premium tax credits.

13 Comments - what are your thoughts?

  • SAMKD1 says:

    Obviously you are tuned into the liberal media, who rarely get anything right, especially when it comes to mistaken made by the administration or Obama…
    I spent 50 years in the insurance industry in executive positions and I am well versed in insurance matters. Unfortunately those who believe in Santa Claus and the Easter Bunny, now believe in Obamacare. Alas, they will find that it is a fairy tale disaster just waiting to happen.

  • SAMKD1 says:

    We do not need another Obama mistake… The Obamacare program is a farce, and people who signed up are now finding that out. Government has never done anything better than the private sector… Wake Up America

    1. I Seigel says:

      Really? All the news reports and polls I’ve read reveal that, by a vast majority, the millions who have signed up for insurance under the ACA are happy with the program. Maybe it’s just your ideology that is drowning out news you don’t want to hear.l

      1. 1commonjoe says:

        People have lost their doctors. They can’t find doctors or dentist who will take their “obamacare insurance” It’s a bad farce on Americans. Time for Congress to Do Something Better For Everyone! People that lost their insurance have been going without.

        1. I Seigel says:

          As I said, the vast majority are pleased with the new system. I didn’t say the approval rating was 100%. And the “time for Congress to do something better” has been for many years now. The Republicans in Congress promised to “fix Obamacare” or replace it with their own plan. Yet we’ve waited 5 years now for the plan, and they’ve yet to present a package. But they’ve managed to vote over 40 times to dismantle Obamacare, to be replaced with…..what?

          1. 1commonjoe says:

            Can you post your links for your “vast majority” No one I know agrees with you.

  • I Seigel says:

    Thank goodness some activist judges decided enough was enough. Maybe this nightmare will soon come to an end and Obamacare will be buried! Will anything replace it? Will my 22-year-old still be able to stay on my insurance until she’s 25? But what if I lose my job and I have to get new health insurance – will my pre-existing condition prevent me from being insured? Oh, so many questions and no answers just yet. I know they’ve been working on an alternative plan for the past 4 or 5 years, and I’m sure we’ll see the details real soon. But at least we can see the end of Obamacare. We have our freedom back! Yay!!

    1. edgineer says:

      Do you actually believe you can keep your adult son on your insurance with no increase in the premiums? You will simply end up paying for his insurance through your policy.

      1. I Seigel says:

        And what’s your point? When was there ever a promise made that your premium wouldn’t go up by keeping your child on your policy? The program only promised that your kid wouldn’t be on his/her own when he/she turned 21. What, now you’re expecting something for nothing??!! And from the government, no less!! You can’t criticize a program that is not delivering something that it never promised to deliver.

        1. edgineer says:

          My point is this. If your son buys his own insurance policy, he pays the premium. If he stays on your policy, you will pay that premium. So big deal, you get to pay your son’s insurance costs.Well excuuuse me! I thought we always had THAT option..

          1. I Seigel says:

            You apparently don’t have a kid, or you would know the very simple answer to this question. If your child were to buy her own policy, it would cost the “single, full rate”. If she’s on your policy, the amount you pay extra is a fraction of the “single, full rate”. Compare the rate you would pay, the rate you + spouse would pay (it’s NOT 2x what you would pay), and the rate you + spouse + child would pay (it’s not 3x what you alone would pay.

          2. edgineer says:

            What gets tacked on to your policy is the same amount a child would pay on a separate policy. Insurance companies do not give volume discounts. The amount is based on actuarial tables which define statistical likelihood of injury and illness.

          3. I Seigel says:

            You couldn’t be more wrong. You made 3 statements here. The first 2 are completely false. Did you do ANY research before you posted your claims?

            Of course insurance companies give “volume discounts”!! Why do you think it’s cheaper to get a group policy through your employer than to buy insurance on your own?!?! If the industry wasn’t structured that way, then having insurance available thru your employer would cost exactly the same as buying it yourself. Then the entire system of employer-provided insurance would crumble. (And wouldn’t THAT be a great idea!!)

            And you can easily look up the tables of premiums for companies like Primera, Group Health, etc and see what the costs are for yourself, self+spouse, self+spouse+child. I can’t seem to post weblinks here without some sort of additional inspection by the forum moderators.

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