Democrats

Supreme Court Will Hear New Obamacare Challenge

The Affordable Healthcare Act is headed back to the Supreme Court.

Via Huffington Post:

Obamacare once again faces death before the Supreme Court.

The justices announced Friday they will decide on a lawsuit claiming that the language of the Affordable Care Act doesn’t allow the government to provide tax credits to low- and moderate-income health insurance consumers using the federally run Obamacare exchanges operating in more than 30 states. The lawsuit contends that the ACA only permits subsidies to be distributed by state-run exchanges.

President Barack Obama’s administration maintains this argument is baseless and that Congress always intended these subsidies to be available nationwide.

A ruling in favor of the plaintiffs in this lawsuit, King v. Burwell, would utterly devastate Obamacare.

The chief aim of the law is to expand health insurance coverage and offer financial assistance to families that can’t afford it. Since most states declined to set up their own health insurance exchanges, the federal government was left to set them up instead. As a result, more than two-thirds of the people who had signed up for health insurance of April 30 purchased their insurance from a federal exchange. Among all enrollees, 85 percent received subsidies to help pay for it — that’s almost 5 million people. The average value of these tax credits was $264 a month, which represents a discount off the sticker price of more than three-quarters.

This is a credible threat to Obamacare and the fact that Congress is now completely in the hands of Republicans puts the future of the law in doubt. While Obama can veto the GOP there isn’t much can do if SCOTUS rules against him.

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