The U.S. Court of Appeals for the District of Columbia overturned a lower courts ruling. It ruled that, regardless of any rules the I.R.S. makes, they do not have legal authority to advance tax-credits to insurance companies for the benefit of people who enrolled in health insurance through the federal “Marketplaces.”
The court ruled that the I.R.S. could continue to subsidize health insurance for people who lived in states where a state-based exchange was created but that the lawyers for HHS failed to proved that both state and federal exchanges had an equal standing in the PPACA.
The court did not declare tax-credits unconstitutional. They merely confirmed the plaintiff’s contention that there is a gaf in the language of the PPACA that requires the I.R.S. to treat state-based and federally facilitated health insurance exchanges differently.
The courts chose, rather than to make law, send it back to congress to be more exact in the language of the PPACA.
The problem is that the 113 congress is different than the 111th congress. One political party does not have the ability to force legislation on America. While the Democrats still remain in control of the Senate, the Republican Party, with their vastly different philosophy, controls the House of Representatives.
It is possible that congress could correct their mistake, but if the Republicans retain control of either the House of Representatives of the Senate, in this year’s elections, a corrected PPACA is not probable.
It looks like the fate of “Obamacare,” in states that did not elect to establish a state-based exchange, is heading back to the U.S. Supreme Court.
I know that the politicians from, states like California and New York, are going to start screaming about “Judicial Legislation” and how unfair they are. When you hear Nancy Pelosi, et all, start flapping their gums, please remember that they represent states that elected to establish state-based exchanges. None of their constituents are affected by today’s ruling. As a result, anything they say should be dismissed.