Posted on 07/22/2014 9:42:04 AM PDT by SeekAndFind
A federal appeals court on Tuesday dealt a setback to the Affordable Care Act, ruling that premium subsidies provided through the federal health exchange in 36 states are invalid under the writing of the law.
Here's the practical effect of the ruling, if it withstands the rest of the legal process: More than 5 million, generally low-income Americans who received tax credits through the federal exchange to purchase health insurance would see their premiums explode.
Avalere Health, an independent healthcare firm, released an analysis last week showing that individuals who received premium subsidies for health insurance would see a premium hike of about 76% if courts ultimately rule they can't get tax credits through the federal exchange.
"The court case has major implications for future insurance coverage and access to care for millions of Americans," said Caroline Pearson, vice president at Avalere Health. "Depending on the ultimate decision by the courts and absent some other remedy, individuals in at least 25 states who remain in their current plans could see an average premium increase of over 70%."
(Excerpt) Read more at businessinsider.com ...
“A tax credit is a reduction in taxes to be paid.”
This is incorrect. A credit is the same as if you had paid. It is independant of any taxes you may owe.
“If there are no taxes to be paid is there a credit?”
Yes. Millions of people get tax “refunds” every year that are much larger than any taxes they paid because they received tax credits.
Tax credits are a wealth redistribution scheme.
Obama's response was what he usually does, ignore the law and issue a dictatorial diktat.
If a higher court overturns this ruling in the name of protecting Obama and essentially ignoring the law as passed, then they are basically saying that Congress has no authority anymore. By extension, they would be ruling that the people no longer have any constitutional expectation of representation.
-PJ
Ah yes the Boxer-Pelosi-Feinstein Tuna company : )
You just know someone told the democrats they do not want to pay those high costs. This was their reward only to have it snatched away by a court. I guess obama will ignore the ruling and John Boehner will continue to fund obamacare.
No taxation without representation? THAT could get sticky.
In other words, other people are not going to pay their insurance premiums (on top of their own)
welcome to reality
The other view of this is that Congressional compromise to deal with situations at the time resulted in the law being written as it was.
If the Democrat expectation really is that it doesn't matter what compromises they make situationally because the court will restore what the Democrats wanted eventually anyway, then we are dealing with bad-faith negotiators within Congress; Democrats who don't care what they agree to, and Republicans who go along with the charade.
-PJ
Yes, there will be wailing and gnashing of teeth by a lot of 0bamaVoters too.
:)
Two rates? One is the "insurance" rate, one is the pay as you go rate (and the pay as you go, i.e., CASH, would probably be cheaper). There wa s time in this country when there was NO health insurance. It was a PERK, a BENEFIT for companies to entice the best to come work for them. Enter the politicians and look where we are at now with the FSA spread all over the United States.
Exactly: the premiums are already higher because of Odumblecare. The subsidies just dampen the effect.
Without them we are back to the same model of unaffordable insurance for so many folks. And those folks will simply not pay. Thats the way of it.
If the subsidies are illegal, then the recipients will be required to pay it back.
“...and oh, by the way-—on top of the $412 per month increase, you’ll need to pay back the $6,106 you benefitted from erroneously. Sorry ‘bout ‘dat.”
Not to worry, eh? Mr. mulato has a pen and a phone, and he’s focused like a dog on a bone and he’ll.................................................squirrel!
The uninsured were always receiving emergency care by law. The poor always had medicaid. And forcing every policy to include everything like birth control, etc made all this too expensive for everyone.
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