ACA Subsidies Delima May Derail
Obamacare & Impact Small Businesses
A case broght by businesses is
challenging the subsidies program for the Affordable Care
Act (ACA). The
case claims that the ACA allows insurance subsidies in
state-run exchanges but not for federally run exchanges.
They claim that the Obama administration wants to
provide subsidies to individuals signing up through the
state-run exchanges as well as the federally run exchanges
in contradiction to the ACA law.
The awarding of subsidies is
scheduled to begin January 1, 2014.
A District of Columbia federal judge
ruled that the lawsuite can go forward.
The judge decided not to block the Subsidies while
the case moves forward.
If the Plaintiffs prevail individuals in 34 states
will not get subsidized health care.
This could have negative implications for the whole
to the Affordable Care Act's Section 1401, subsidies in the
form of tax credits are available to individuals who
"enrolled in through an Exchange established by the State
under 1311 of the Patient Protection and Affordable Care
Act." Section 1311 defines an Exchange as "a
governmental agency or nonprofit entity that is established
by a State." Of course, in Section 1322 the law gives the
federal government power to create exchanges in states that
fail to or elect not to establish exchanges.”
See more ACA news.
Halbig v. Sebelius