Obamacare’s power of plan language

Ah, yes, you speak of the Patient Protection and Affordable Care Act, which the then-Democrat-controlled Congress passed on a party-line vote back in 2009. It’s been the subject of lots of confusion and lawsuits ever since.”

“I thought the Supreme Court ruled on ObamaCare in 2012.”

“That ruling had to do with the constitutionality of the Affordable Care Act’s individual mandate. The federal mandate requires individuals to purchase health insurance — but the Supreme Court ruled, 5-4, that this requirement is OK because it is really a tax.”

“Congress may be incompetent in many areas, but it sure is good at creating new taxes.”

“Well, a ruling is expected this month in the case now before the Supreme Court, which has to do with health-insurance subsidies. When the bill was written in Congress, four simple words were put in: ‘established by the state’ The idea was that subsidies would only be available to people who purchase insurance in a market exchange established by their state.”

“Why would the drafters of the bill include a term like that?”

“Some suggest it was done to force states to set up ObamaCare market exchanges or risk losing federal subsidies that help those who can’t afford ObamaCare — no small number of people — afford their premiums. But 34 states still refused to set up exchanges.”

“Which means?”

“Well, since 34 states refused to set up ObamaCare exchanges, the federal government stepped into those states and set up federal exchanges that provide ObamaCare customers with federal subsidies to help them purchase ObamaCare policies. The IRS, the federal agency tasked with enforcing ObamaCare, decided to ignore the four words, ‘established by the state,’ even though they are plain as day in the law. So various states and local governments filed suits.”

“So, what happens if the Supreme Court rules that only the state-run exchanges can receive federal subsidies?”