Obamacare Architect on Record for Agreeing with D.C. Appeals Court Decision

July 25, 2014

On July 22nd, the U.S. Appeals Court for the D.C. Circuit ruled in a 2 to 1 decision that the residents of any state that used the federal health insurance exchange could not legally receive taxpayer subsidies to help them purchase health insurance. (Here) The language in the Affordable Care Act (ACA), or Obamacare, is very specific. Only exchanges “established by the State” can receive subsidies. (Here)

The government argued that the intention of the law was to allow any exchange, state or federal, to utilize subsidies. Here is our blog from the 22nd.

One of the principle architects of Obamacare, as well as its predecessor Romneycare, was Jonathon Gruber, an M.I.T. health economist. Although Professor Gruber now claims the intent of the law was to allow subsidies in both state and federal exchanges, an interview from 2012 has recently been uncovered. (Here) In this interview, he is very clear that the wording of “State"-only was intentional and was put into the law to force or coerce states to participate in Obamacare.

So regardless of what the Obama Administration now claims, it is obvious that the ruling from the D.C. Appeals Court is accurate and subsidies in the federal exchange are illegal. This U.S. Supreme Court will undoubtedly make the final legal decision on this issue.