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Obamacare Lawsuit

Obamacare Lawsuit

 



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After countless lawsuits against the Affordable Care Act (ACA)  were rejected by the Supreme Court, Republicans in the House of Representatives finally had a huge victory on Thursday (05.12.16) when a Judge ruled in favor of their lawsuit against the ACA stating that certain Obamacare payments have been funded illegally.


U.S. District Judge Rosemary Collyer struck down a portion of President Obama’s Affordable Care Act health law, ruling in favor that the Obama administration unconstitutionally provided money to pay for subsidies that were allegedly never appropriated by Congress for the ACA’s cost-sharing provisions.

Those provisions include covering costs for co-payments, reduced deductibles & coinsurance, that an estimated 5.6 million or 56% of Americans receive for plans purchased through the Affordable Care Act’s insurance exchanges.

Judge Collyer wrote that appropriating the money without congressional approval violates the U.S. Constitution, and scoffed at the Obama administration’s argument that stated, other parts of the law show that payments should be allowed. Collyer stated, “(It’s) a most curious and convoluted argument whose mother was undoubtedly necessity”.

In a statement, House Speaker Paul Ryan said the decision was a, “historic win for the Constitution and the American people” and mentioned the ruling holds the executive branch accountable to American citizens.


The Obama administration is expected to appeal the decision; however, Judge Collyer stated she would stand by her ruling pending an appeal.

It’s unclear exactly how much damage it would cause for the ACA in the long run if Judge Collyer’s  decision were to be upheld by the appeals court &/or the U.S. Supreme Court; however, consequences such as higher premiums, more federal debt or decreased enrollment in the exchanges would result from Congress’ refusal to appropriate money for cost-sharing, she wrote. “That is Congress’s prerogative; the Court cannot override it by rewriting (the law).”

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