If you are an individual residing in one of twenty seven states that have chosen not to implement a state-based health insurance exchange (ie KS & MO), will you or will you not be eligible for a subsidy if you desire to purchase individual health insurance through the federal exchange? I believe the answer is NO!.
The "ObamaCare" legislation railroaded through the system exclusively by the Democrats failed to include provisions for a subsidy when insurance is purchased through a federal exchange. The only way to change it would be for congress to pass legislation to amend the law (in my opinion).
President Obama, HHS Secretary Sebelius, and the insurance companies believe that the "intent" of the law was to provide subsidies for both state based and federal based exchanges and are all moving full speed ahead towards socialized medicine. Michael Cannon of the Cato Institute has been a leading authority on this issue during the past year. The million dollar question is this: Where in the heck are the voices of our elected public servants?
The silence on this issue is deafening. Please contact YOUR Statewide and Federal SERVANTS and demand that they take an active role in supporting Michael Cannon by denouncing federal insurance exchange subsidies in addition to defunding Obamacare! See latest story below:
The Wisdom of States Not Implementing ObamaCare Exchanges
September 6, 2013 · By Robert Romano
That was former President Bill Clinton’s take on 27 states that are not implementing state exchanges under the new health care law, speaking at his presidential library. He accused them of “leaving money on the table,” as if they were somehow missing out on something. Yet, if anything, not implementing the exchanges is saving these states money.
Under the law, states that do not set up their own exchanges will simply default to a federal exchange operated by the Department of Health and Human Services based in Washington, D.C. It will make no difference in actually implementing the law. Insurance subsidies will still be dispensed via the federal exchanges, just not with the state’s assistance.
Apparently, like many members of Congress, Clinton did not read the law either.
There is another advantage to states that opted not to establish their own exchanges. They may have given the legal standing to businesses in those states to fight the job-killing employer mandate.
According to a July 2012 study by Case Western Reserve University School of Law’s Jonathan Adler and the Cato Institute’s Michael Cannon, “Taxation without representation: The illegal IRS rule to expand ta... a federal exchange that would be implemented in the stead of a state exchanges “lacks statutory authority” to dispense the insurance subsidies.
In the study, Adler and Cannon make the case that “An Internal Revenue Service (IRS) rule purports to extend these tax credits and subsidies to the purchase of health insurance in federal exchanges created in states without exchanges of their own.”
The problem, according to Adler and Cannon, is that the “text, structure, and history of the Act show that tax credits and subsidies are not available in federally run exchanges. The IRS rule is contrary to congressional intent and cannot be justified on other legal grounds.”
This creates a real problem legally for the Obama Administration in states that a federal exchange is implemented. By not implementing the state exchange, governors such as Rick Perry in Texas are effectively giving employers in those states the standing to sue against the new IRS rule.
With all due respect to Clinton, nobody’s leaving any money on the table. The decision over state exchanges and Medicaid expansion for that matter is about whether states are going to assist in the implementation of Obamacare or not.
On that count, the federal government will enforce the law whether the states like it or not. At least by not cooperating, these 27 states are creating an avenue to fight the law in court. It’s worth a shot, particularly, so long as Congress continues to fund Obamacare. This may be the only way the American people ever get rid of it.