Supreme Court to Hear Challenge to Obamacare

Supreme Court building in Washington, DC
The Supreme Court has decided to hear a challenge from
Republicans to the Affordable Healthcare Act.
Image:  Shutterstock
In a surprise move, the Supreme Court has decided to hear a challenge to the Affordable Healthcare Act (AHA), it announced on Friday.

King v. Burwell was brought by four Virginian Republicans wanting to review the use of subsidies as part of the law. Currently, the law states that Americans qualify for tax credits when they purchase insurance through an online market. Fourteen states so far have their own markets, called exchanges. Those that don't are allowed by the law to use the federal exchange, the Healthcare.gov website. The question then becomes:  Should those who purchase insurance through a federal subsidy still be able to claim the tax credit? For now, the IRS says yes, but should the challenge go through and determine that all subsidies are unlawful, that will change.   In addition, more than half of the 7.3 million people on Affordable Healthcare Act policies will lose subsidy assistance and be unable to afford healthcare.

"The Supreme Court isn't waiting to see what a lot of different circuit courts of appeal around the country will do," commented attorney and legal analyst Kendall Coffey. "This time, they're moving ahead with the issue--and it's got to be somewhat ominous for the administration because of the interest the Supreme Court has shown."

Republicans are generally pleased with the swift movement, however. Seven Republicans have filed a brief supporting the appeal. "President Obama’s health law was pushed on the American people through a highly partisan effort that never did an adequate analysis of the government’s authority to provide premium subsidies through exchanges established by the federal government," said Darrell Issa, R-CA and chairman of the House Oversight and Government Reform Committee.

"The whole pyramid scheme is based on forced dues," agreed Texas Representative Steve Stockman, adding that "if you don't force dues, and you don't force the states to subsidize, then a lot of people are not going to be able to afford it....The administration is going to be forced to change it."

Other reactions to the challenge have been far less positive. Eighteen state attorney generals submitted a brief in favor of preserving the subsidies, arguing that ruling against them would "deprive millions of low- and moderate-income Americans of billions of dollars in federal premium assistance needed to buy health insurance." This group included officials from Virginia, North Carolina, Pennsylvania, Iowa, New Mexico, New Hampshire, Arkansas, and Mississippi.

The decision to hear the challenge comes only a few days before the second open enrollment period for the AHA on November 15. A ruling is expected by June of 2015.


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