A continuation from previous article titled “ObamaCare Part 1” discussing Mr. Obama’s initiative to overhaul the U.S. Healthcare System. Link below.
This article will discuss how the Obamacare’s subsidies handout was put to test in 2 circuit courts (District areas) with different outcomes and impact.
BACKGROUND
Forbes remarked that “The Constitution forbids the federal government from compelling states to implement federal policies—e.g., creating health insurance exchanges.” With this in mind state lawmakers were required by ObamaCare’s regulation to establish their own Exchange otherwise federal subsidies would be withheld.
Source:www.forbes.com
When the Act was enforced, Forbes reported that nearly 40 States did not establish their own exchanges and as a result, “in order to protect Democratic lawmakers who voted for ObamaCare, the IRS ignored the law’s explicit wording and began sending subsidies to everyone."
Source:forbes.com
THE CASE
In July 2014, the case of Halbig v. Burwell challenging U.S. Treasury regulations issued under the Patient Protection and Affordable Care Act at the U.S. Count of Appeals for the D.C. Circuit was ruled 2-1 in favour of the plaintiff that subsidies from Obamacare are available only for plans enrolled through an Exchange established by the States.
Moments later on a separate case of King v. Burwell, the U.S. Court of Appeals for the Fourth Circuit ruled 3-0 in favour of Burnwell that IRS (Internal Revenue Services) has the authority to issue subsidies on federally run exchanges.
Note: If the divide in the circuit courts continues, the case might be heard by the high court some time in the future.
VIEWS
The regulation was put in place by the architects to induce and intimidate state lawmakers to create their own Exchanges for fear of losing subsidies but was unfortunately backlashed as most states were not agreeable to the Act due to its unpopularity.
The Hill reported that “approximately 5 million people could lose their healthcare subsidies if a final ruling invalidates the IRS’s regulation.”
Source: www.thehill.com
In the event of a subsidies cut, I foresee insurance premiums skyrocketing for participants aged below 30 and earning above the eligibility for subsidies. This is to absorb the additional costs to ensure that health coverage is still affordable by everyone.
I would foresee an increase in rejection of health coverages requiring specialized treatments under Obamacare as the Guardian Liberty Voice reported in early March that only one out of four national cancer centers will accept Obamacare Coverage and "patients excluded may not be able to get the best treatment, or be included in the clinical trials of new medications"
Source: http://guardianlv.com/2014/03/obamacare-denied-at-most-cancer-hospitals/
