Smoking gun on original intent of ACA: No premium subsidies for FEDERAL-exchange plans

Smoking gun on original intent of ACA: No premium subsidies for FEDERAL-exchange plans

[Ed. – Nobody preparing for implementation behaved as if there might be premium subsidies for customers of the federal-exchange plans, until early 2012, two years after the ACA law was signed.  It was only when more than half the states had decided not to create state exchanges that the IRS began to prepare for premium subsidies for the federal-exchange plans.  But the administration never went to Congress to get the law changed.]

A new paper by businessman and finance expert Scot Vorse throws an evidentiary grenade into the pending Supreme Court Case on Obamacare, King v. Burwell. The new information, published in a white paper from the Competitive Enterprise Institute, “highlight[s] a growing body of evidence indicating government officials originally planned to offer Obamacare tax credits only on state-established insurance exchanges,” according to the accompanying CEI press release.

At issue in King v. Burwell is whether the 2012 IRS rule that provided federal tax subsidies to Obamacare enrollees in the 34 states that have chosen not to open their own exchanges is authorized under the 2010 Patient Protection and Affordable Care Act (Obamacare). The plain language of the law contains no such provision.  …

In his white paper, Vorse presents compelling evidence that from March 23, 2010, when President Obama signed Obamacare into law, until early 2012 no one in Congress or the Obama administration interpreted the law as offering federal insurance premium subsidies to residents of states that did not set up their own health exchanges. …

“What the administration is saying today,” Vorse wrote on Thursday, “directly contradicts what HHS, Treasury, and the IRS did for the first two years of Obamacare’s implementation. It was not until many states opted out that the administration’s story began to change.”

As the CEI pointed out in its news release: “Vorse’s findings demonstrate that although HHS helped states develop a tax-credit calculator, the department initially set out to establish its federal exchange without a calculator and would not provide users any information about tax credits.”

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