Thursday, September 8, 2011

The Latest in Obamacare’s Comedy of Errors

Last night Investor’s Business Daily published a story regarding yet another potential “glitch” in the drafting of Obamacare that could have BIG implications for states and the American people.  Specifically, page 110 of the statute specifies that insurance subsidies should be paid only to individuals enrolled “through an Exchange established by the state under [Section] 1311” of the law.  If a state decides not to establish an Exchange, the federal government will establish one on states’ behalf – under authority granted in Section 1321(c) of Obamacare, NOT Section 1311.  But the statute states that ONLY those enrolled in Exchanges established under Section 1311 are eligible for subsidies.  This creates three possible scenarios:

Force Individuals to Buy Insurance They Cannot Afford:  Individuals enrolled in federally-run Exchanges will not be eligible for subsidies, meaning many fewer people may obtain coverage than first projected – and individuals will be forced to buy coverage under the individual mandate even though they may not be able to afford it absent premium subsidies.

Force States to Create Exchanges:  This latest “glitch” – and/or strong-arm tactics from the Administration through the regulatory process – imposes additional pressure on states to create Exchanges, despite the fact that they may not wish to incur the expense to do so, particularly given the ongoing legal uncertainty surrounding the law.

Obama Administration Violates Obamacare Statute:  The Administration appears intent on taking this tack.  Page 4 of the proposed premium subsidy regulation states that “a taxpayer is eligible for the [subsidy]…if the taxpayer is…enrolled in one or more qualified health plans through an Exchange established under Section 1311 or 1321” of Obamacare – despite the fact that the statute itself limits subsidy payments to individuals enrolled in Section 1311 Exchanges.  Unfortunately, this wouldn’t be the first time the Administration took liberties with the plain text of the statute.  The Administration previously released regulations regarding coverage for children that even Democrats admit violate what Obamacare itself says, and the Office of Personnel Management unilaterally decided to keep Members of Congress in their current health coverage, even though multiple sources cast doubt on OPM’s authority to do so.

Last year, then-Speaker Pelosi famously said we had to pass the bill to find out what’s in it.  Reading the stories about the latest Obamacare “glitch,” the American people have found yet another way in which Obamacare is becoming an implementation nightmare.