House wins Obamacare lawsuit: Obama funded key subsidies improperly

House wins Obamacare lawsuit: Obama funded key subsidies improperly

[Ed. – The media are basically downplaying this, but it’s big.  It affirms that, under his own law, Obama had no power to offer these subsidies unless Congress appropriated funds for them.  Congress has refused to, and Obama used other money to offer them anyway.  But a court has just ruled that he can’t.]

A federal judge on Thursday ruled the Obama administration has been improperly funding an Obamacare subsidy program, a huge win for the House of Representatives in a lawsuit against the White House.

Congress authorized the program but never actually provided the money for it, wrote U.S. District Court Judge Rosemary M. Collyer. The program will be allowed to continue, pending appeal. …

The ruling, if it stands, could be a significant financial setback for the millions of low-income Americans who benefit from the cost-sharing subsidies, which help people pay for out-of-pocket costs like co-pays at a doctor’s office. …

Several million Obamacare customers receive cost-sharing subsidies, but the exact figure is unknown. As of the middle of the last Obamacare enrollment period, 57 percent of people who signed up for coverage through the federal exchange on HealthCare.gov receive them.

If the cost-sharing subsidies are eliminated, government actuaries estimate that insurers would increase premiums — up to 20 percent to 30 percent for silver-tiered plans — to make up for the loss.

Continue reading →


Commenting Policy

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.

You may use HTML in your comments. Feel free to review the full list of allowed HTML here.