Daily Archives: July 25, 2014

Halbig vs. Burwell: The Surprise Obamacare Ruling That Wasn’t

The Surprise Obamacare Ruling That Wasn’t – Bloomberg View.

So let’s examine Jonathan Gruber, who according to the above article is widely known as one of the architects of both Romneycare and Obamacare.   …He claims to have helped write the part of the bill that deals with small-business tax credits.

Here is what he said in January 2012…

What’s important to remember politically about this is if you’re a state and you don’t set up an exchange, that means your citizens don’t get their tax credits — but your citizens still pay the taxes that support this bill. So you’re essentially saying [to] your citizens you’re going to pay all the taxes to help all the other states in the country. I hope that that’s a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these exchanges. But, you know, once again the politics can get ugly around this.

I guess they had to pass the bill to find out what’s in it. It’s obvious the intent was for the subsides to be “the stick” to encourage States to set up their own exchanges. When the states balked, Obamacare supporters tried to change the meaning of the words in the bill.

Don’t think it’s going to work.

However, here is what will most likely work.  I suspect Obamacare supporters will figure out a way to split healthcare.gov to a site that is healthcare.state.gov and that will “solve” the problem. I’m sure it’s more complicated than that but such a strategy will most likely stay one step ahead of the lawsuits. Also, are Republican’s really going to leave people without subsidies? I’m sure there will be a lot of discussion on this issue as time passes, especially if the Supreme Court rules the same as Halbig vs. Burrell.