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Federal Ruling On Obamacare Reverses Subsidies: Decision On Hold Pending Appeal

By Cal Jeffrey
Published on: 06:01 PST, May 13, 2016

A federal ruling on Obamacare reverses the subsidies allowed by the law due to improper funding. The Affordable Care Act (ACA) suffered a setback Thursday when a federal judge ruled that the administration has been improperly funding subsidies given to cover the cost of out-of-pocket expenses. If the ruling stands, funds to help patients pay for things like co-pays will cease unless a means of funding these expenditures is found. However, the subsidy program will continue pending an appeal on the ruling. United States District Court Judge Rosemary M. Collyer, presided over the case.

The ruling against the Obamacare subsidy program came about because although Congress had authorized the program, it has never appropriated funding for it.

According to Politico, Judge Collyer wrote, “Congress is the only source for such an appropriation, and no public money can be spent without one.”

The lawsuit was brought against the law by the U.S. House of Representatives. Lawmakers challenged the program because the administration bypassed Congress in the subsidization of the insuring companies.

The Washington Times quoted Collyer’s decision saying, “Authorization and appropriation by Congress are nonnegotiable [sic] prerequisites to government spending.”

According to Collyer, the administration is breaking the law by continuing to make payments to the insurers. However, she is putting a hold on her decision to allow the president a chance to appeal.

The federal ruling on the Obamacare program is the first step in “reeling in executive powers that many legal experts say have grown far beyond what the country’s founders intended,” said the Washington Times.

Politico also reported that House Ways and Means Committee Chairman Kevin Brady said, “This decision is a critical step in protecting Congress’ power of the purse from an administration that has repeatedly ignored a fundamental principle of our Republic: the separation of powers.”

The federal ruling against Obamacare is a monumental decision. The Washington Post stated that House Speaker Paul Ryan seemed overjoyed in a statement after the ruling.

“This is an historic win for the Constitution and the American people. The court ruled that the administration overreached by spending taxpayer money without approval from the people’s representatives. Here, the executive branch is being held accountable to We the People, and that’s why this decision is very good news.”

While many are hailing the federal ruling on Obamacare subsidies as a GOP victory, many conservative constituents consider it a win for the American people and the U.S. Constitution. The conservative organization FreedomWorks stated that they were pleased with the decision and hope that it stands as they believe that the Obama administration has repeatedly overstepped its constitutionally set boundaries.

The Washington Post also quoted conservative legal scholar John Yoo, who said, “One fundamental ‘red line’ of our Constitution is that only Congress can decide how federal money is to be spent. Obama becomes the first President after Nixon to lose in court for trying to spend money in defiance of Congress’s appropriations, and deservedly so.”

The federal ruling on Obamacare also has its critics. The Los Angeles Times published a scathing editorial labeling the lawsuit as the “GOP’s scorched-earth approach to Obamacare.”

The Los Angeles Times editorial staff feels that if the decision is not overturned on appeal, insurers will either have to pass on the additional costs by raising premiums or simply drop the subsidies when the government cuts off funding.

“Either way, an enormous number of people could suffer,” the Times writes. ” But that seems to be the GOP’s strategy in its scorched-earth approach to Obamacare: Rather than trying to fix the possible statutory defects and make the law work better, they’ve sought to destabilize it, causing enough pain and turmoil that Democrats abandon it.”

Even though the federal ruling on Obamacare will not take effect until the decision has worked its way through the appellate court and is upheld, heated debate on the issue is sure to continue. Both sides of the issue hold to stringently polarized viewpoints with no apparent middle ground, even though both sides see the law as deeply flawed.

The only thing that seems certain at this point is that November’s presidential election will determine how far the federal ruling on Obamacare subsidies will go. If conservatives win the White House, the case will likely be dropped. If a liberal president is elected, the decision will likely proceed all the way to the U.S. Supreme Court.

[Photo by Jon Elswick/AP Images]

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