When the GOP effort to repeal and replace Obamacare was at its height, Democrats like Chuck Schumer and Nancy Pelosi told us that the GOP just wanted to favor insurance companies over average Americans. Now, the government has announced that it will stop paying subsidies to insurance carriers in accordance with a ruling by a federal court last year. The same Democrats are apoplectic. That always reliable hysteric, NY Attorney General Schneiderman, is threatening to sue. I guess he doesn't understand how court cases work.
Let me explain. When Obamacare was passed, there was a mechanism included in the bill to let the government subsidize insurance companies to "stabilize" policy prices. That mechanism was funded for the first few years in the bill. When the initial appropriation ended, Congress did not pass any further appropriation to allow additional spending. That did not stop president Obama, however, and he ordered continued funding of the subsidies to insurers. As a result, the House of Representatives actually went to court seeking an order declaring the subsidies to be illegal because there was no appropriation by Congress. In 2016, the federal court ruled in favor of the House. It did not order an immediate cutoff of the subsidies, however, to allow for any appeals. Obama just kept send cash to the insurance companies. Now, the Department of Justice has concluded after a full review that the court was correct and that there is no legal basis upon which to continue the subsidies absent action by Congress. Accordingly, the subsidies have been cut off. What that means is that Schneiderman can't sue because the issue has already been decided by a court.
If the Democrats are so worried about subsidizing the insurance companies, they can propose a bill that calls for such subsidies. They don't want to do that, however, because they like to claim (falsely) that they stand against the insurance companies and with the people who have to buy policies.
Let me explain. When Obamacare was passed, there was a mechanism included in the bill to let the government subsidize insurance companies to "stabilize" policy prices. That mechanism was funded for the first few years in the bill. When the initial appropriation ended, Congress did not pass any further appropriation to allow additional spending. That did not stop president Obama, however, and he ordered continued funding of the subsidies to insurers. As a result, the House of Representatives actually went to court seeking an order declaring the subsidies to be illegal because there was no appropriation by Congress. In 2016, the federal court ruled in favor of the House. It did not order an immediate cutoff of the subsidies, however, to allow for any appeals. Obama just kept send cash to the insurance companies. Now, the Department of Justice has concluded after a full review that the court was correct and that there is no legal basis upon which to continue the subsidies absent action by Congress. Accordingly, the subsidies have been cut off. What that means is that Schneiderman can't sue because the issue has already been decided by a court.
If the Democrats are so worried about subsidizing the insurance companies, they can propose a bill that calls for such subsidies. They don't want to do that, however, because they like to claim (falsely) that they stand against the insurance companies and with the people who have to buy policies.
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