Proof That SCOTUS Got Subsidies Case Wrong
Comment: The Cato institute’s Michael Cannon and Case Western University’s Prof. Jonathan Adler made waves when they pointed out that Obamacare’s language did not permit payment of its premium welfare subsidies (“tax credits”) on the federal government’s Obamacare exchange. As laid out in Supreme Court arguments and on these pages, the Obamacare ‘law’ specifically limited its premium welfare subsidies to state-made exchanges, intentionally excluding the federal government’s Healthcare.gov because the subsidies were meant as the critical incentive for states to create their own exchanges.
As proof that the Administration desperately wanted states to create exchanges one only need examine the history of HHS Sec. Sebelius’ arm-twisting jihad of 2013, plying and pleading with unimpressed governors across the United States. As evidence of the need for a positive incentive for states to create these exchanges, one only need note that even with the premium welfare subsidy inducement, few states bothered to do so.
And if one ever needed proof that those subsidies were always intended (and essential) as an inducement for states to create their own Obamacare exchanges, one need only observe that now that the Supreme Court has arbitrarily decided to expand those subsidies, states that had exchanges are dropping them, and states that were considering exchanges are abandoning their plans.
Michael Cannon was right, and SCOTUS was wrong.
DOVER, Del. (AP) — “Delaware officials have decided not to develop the state’s own health insurance exchange under the Affordable Care Act and instead will keep the current federal partnership model.”
“Delaware was granted approval in June to develop a state-based health insurance marketplace, but Health and Social Services Secretary Rita Landgraf told the Delaware Health Care Commission the state will not move forward with the plan.”
[...] “Delaware officials had considered a state-based exchange amid uncertainty about whether the U.S. Supreme Court would uphold government insurance subsidies for millions of people, including more than 85 percent of the roughly 24,000 Delawareans with active coverage under the health care law.”
“The court’s ruling upholding the subsidies in all states — not just those operating their own exchanges — was a major factor in deciding to keep Delaware’s partnership model, Landgraf said.”
Delaware decides against state health insurance exchange
By RANDALL CHASE, Associated Press
Thursday, August 6, 2015