Thanks to the shoddy drafting of the Obamacare law the DC federal appeals court has ruled that it's illegal to subsidize healthcare plans bought through the federal exchange. The law only authorizes subsidies for plans bought through state exchanges, not through the federal exchange that was created for states that decided not to create exchanges of their own. Obviously this was not the intent of the law, and under normal circumstances Congress would simply pass an update to the law to remove any grounds for controversy. Of course that's impossible due to the politics surrounding Obamacare, and now the whole scheme may be doomed unless the courts decide to apply the law as intended rather than as written. Which these judges, at least, have refused to do.
The 2-1 ruling said such subsidies can be granted only to people who bought insurance in an Obamacare exchange run by an individual state or the District of Columbia--not on the federally run exchange HealthCare.gov. The ruling relied on a close reading of language in the Affordable Care Act."Section 36B plainly makes subsidies available in the Exchanges established by states," wrote Senior Circuit Judge Raymond Randolph in his majority opinion in the case known as Halbig v. Burwell, where he was joined by Judge Thomas Griffith.
"We reach this conclusion, frankly, with reluctance. At least until states that wish to can set up their own Exchanges, our ruling will likely have significant consequences both for millions of individuals receiving tax credits through federal Exchanges and for health insurance markets more broadly."
Obviously I think it would be best for the country for the whole law to collapse. The impossibility of properly fixing this "technical error" in the law is yet another example of how badly things can go when one party forces a bill into law against the will of the citizenry and with no support from the other party. Congress can't patch this mistake, and the courts shouldn't clean up Congress' mess.
