Obamacare is back at the Supreme Court, this time to decide whether the Obama administration expanded the health care takeover beyond what the plain text of the law allows.
At question, Heritage Foundation experts Andrew Kloster and Andrew Abbott explain, is whether Americans who purchase health insurance on the federally-run exchanges are eligible for subsidies:
To help offset the cost of insurance, the Obamacare statute specifically states that lower-income individuals whose incomes fall within a set range are eligible for premium assistance tax credits to purchase health insurance “through an Exchange established by [a] State.”The text of the statute, however, does not say that such credits are available for purchases made through exchanges established by the federal government.
Nevertheless, in 2012, the Internal Revenue Service (IRS) issued a rule saying that the tax credits are available for purchases not just under state exchanges, but also in the (currently 34) states in which the federal government operates the exchange.
Kloster and Abbott explain what may happen if the high court rules in favor of the plaintiffs and against the Obama administration:
- Individuals for whom insurance coverage became a greater out-of-pocket expense (exceeding 8 percent of their income in any given month) without the premium support tax credit would become exempt from the individual mandate.
- Employers in states that refused to set up Obamacare exchanges would be exempt from the employer mandate because no federal outlays would be made to trigger the penalty.
Removing the individual and employer mandates from the already shaky foundation will inevitably lead to the law’s collapse.
Do you think SCOTUS will rule in favor of the plaintiffs and lead to Obamacare’s dismantling?