Politics

House GOP Wins Obamacare Suit

Judge declares administration's funding of cost-sharing subsidy unconstitutional

The House GOP has won its lawsuit against Obamacare.

A federal judge ruled on Thursday that the Obama administration has been illegally funding Obamacare’s cost-sharing subsidy program, although the judge allowed the subsidy to stand pending appeal.

Thursday’s ruling is yet another crack in Obamacare’s facade.

House Republicans contended that while Congress authorized the subsidy program, it never appropriated money to fund it, rendering the Obama administration’s funding of the subsidy illegal. The judge agreed.

“Congress is the only source for such an appropriation, and no public money can be spent without one,” wrote U.S. District Court Judge Rosemary M. Collyer. It is expected that the Obama administration will appeal the decision as soon as possible.

Obamacare requires insurers to provide cost-sharing subsidies to low-income individuals who purchase coverage through the state exchanges, and the law was designed so that insurers would be reimbursed for those subsidies.

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But Congress never appropriated funds to pay insurers back for those subsidies — so the Obama administration unconstitutionally took it upon itself to fund the program through the refundable tax credit account.

“This is another example of President Barack Obama doing something as an executive that only Congress should be doing,” Judge Andrew Napolitano said on Thursday afternoon on Fox.

Thursday’s ruling is yet another crack in Obamacare’s facade. Earlier in the year, UnitedHealthcare announced it was pulling out of the Obamacare exchanges after incurring unsustainable losses. Other insurers — including Blue Cross/Blue Shield and Aetna — have also lost millions through participation in the state exchanges.

Obamacare is fast becoming Obama can’t.

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