While everyone’s attention in the Beltway media was focused on the Hobby Lobby case before the U.S. Supreme Court on Tuesday, an equally important case regarding the Affordable Care Act aka “ObamaCare” was taking place about a mile away at the D.C. Circuit Court of Appeals.
The case is Halbig v. Sebelius, an appeal from the D.C. Circuit Court. The appeal turns on an alleged drafting error in the ACA and congressional intent. Appellants argument is based on a line in the ACA which provides that the insurance subsidies shall be available to individuals enrolled in insurance “through an Exchange established by the State, under section 1311,” which Appellants argue excludes individuals enrolled through the federally-assisted Exchanges.
The import of this is that GOP-controlled state legislatures which sought to sabotage the ACA by not setting up their own state-run Exchanges, could further sabotage the ACA by eliminating the insurance premium and tax credit subsidies to enrollees in the federally-assisted Exchanges (including Arizona) if the plaintiffs are successful with this specious argument.
Just 14 states and the District of Columbia are running their own exchanges in 2014, while the Department of Health and Human Services is operating 36 state exchanges.