ObamaCare Architect Jonathan Gruber: “If You’re A State And You Don’t Set Up An Exchange, That Means Your Citizens Don’t Get Their Tax Credits” – Forbes
Given the importance of the subject matter, I suspect it would be a very good candidate to be heard by the Supreme Court, Christina said. Regardless, lawyers say the court decisions arent likely to prevent people from receiving subsidies in the fallthey expect that people who received subsidies on the federal exchanges will likely be able to continue doing so unless the Supreme Court strikes that down. Related: Over $5 Billion and Counting for Obamacare Websites If that happens, Rust said enormous pressure would be put on lawmakers whose constituents would be furious about losing their subsidies. Meanwhile, health experts say that if the courts decision stands, the pressure will be placed on governors of states who currently rely on the federal exchange. It will put the onus on governors to decide whether to set up insurance exchanges and make subsidies under the ACA available to their residents, said Larry Levitt, Vice President of the Kaiser Family Foundation. This would create a similar dynamic that existed in Medicaid when the Supreme Court ruled that states had the option whether to expand the program or not. In Medicaid, though, states are ultimately on the hook for 10 percent of the cost.
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Just one year laterafter the IRS issued a final rule purporting to authorize tax credits in federal Exchanges, after Jonathan Adler and I published our research on this issue, and after people started filing lawsuits challenging that final ruleGruber was singing a different tune. Heres what he told Mother Jones in January 2013: But probably the most widely touted reason given for why obstinate Republican governors will be able to take Obamacare down is a legal theory pushed by [libertarian] scholars like Michael Cannon, the health policy director at the libertarian Cato Institute. It goes like this: Congress only intended the subsidies and tax credits that help consumers buy health insurance to be available through state-created, not federally created, exchanges. If these benefits arent available in states with federally run exchanges, the argument goes, then other key components of the law, like the requirement that employers offer health insurance, and that most people must buy insurance, also fall apart in those states. Jonathan Gruber, who helped write former presidential candidate Mitt Romneys Massachusetts health care law as well as the Affordable Care Act, calls this theory a screwy interpretation of the law. Its nutty. Its stupid, he says.
For the original version including any supplementary images or video, visit http://www.forbes.com/sites/michaelcannon/2014/07/25/obamacare-architect-jonathan-gruber-if-youre-a-state-and-you-dont-set-up-an-exchange-that-means-your-citizens-dont-get-their-tax-credits/