Skip to comments.ACA opponents want to kill law via subsidies
Posted on 08/07/2012 10:26:31 AM PDT by Lorianne
The next shot in the legal war over the health reform law isnt another lawsuit but an academic paper that says federal exchanges cant give people subsidies to help pay for their coverage.
And though the laws supporters have dismissed it out of hand just as they dismissed the challenge to the individual mandate, the paper could be the start of a challenge that if its successful could do almost as much damage to the law.
The IRS rule is illegal, Adler and Cannon contend. It is not authorized by the text of the [Patient Protection and Affordable Care Act], nor can it be justified on other grounds.
Their argument hinges largely on whether Congress intended federally administered exchanges to be completely equal to state-run exchanges.
Based on an analysis of the debate on the Senate bill which became the basis of the law and the legislative proposals that preceded it, they claim Congress made a decision to build the law based on state cooperation. The federal government-run exchanges were meant as a fallback, and were not intended to replace state-run exchanges.
In fact, they write, Congress intentionally did not give the federal exchanges the power to administer subsidies because it wanted these dollars to be a sweetener to persuade states to set up exchanges themselves.
As an inducement to state officials, the Act authorizes tax credits and subsidies for certain households that purchase health insurance through an Exchange, but restricts those entitlements to Exchanges created by states, they write.
(Excerpt) Read more at politico.com ...