In Potentially "Lethal Blow" For Obamacare, US Appeals Court Finds Insurance Subsidies Invalid In Most States

Tyler Durden's picture

It may be back to square 1 for Obamacare.

Moments ago, in what NBC classified as a "potentially lethal blow to Obamacare" a federal appeals court has ruled that the federal government may not subsidize health insurance plans bought by people in states that decided not to set up their own marketplaces under Obamacare. The law clearly says that states are to set up the exchanges. But 34 states opted not to, and the federal government took over in those states. The court ruled that federal government may not pay subsidies for insurance plans in those states.

As the Hill reports further, the D.C. Circuit Court of Appeals said the Affordable Care Act does not permit the IRS to distribute premium subsidies in the federal ObamaCare exchange, meaning those consumers must bear the full cost of their insurance.

But... they said socialism is for the greater good!?

The 2-1 decision by the three-judge panel in Halbig v. Burwell sets up a major legal showdown that conservatives believe could deal a fatal blow to President Obama’s healthcare law.

And here is where the government's appeal process is sure to benefit from the NSA's treasure trove of dirt on all those judges who dared to throw a spike in the suboptimally greased wheels of government wealth redistribution:

The government is expected to appeal the ruling to the full D.C. Circuit, but even if the administration triumphs there, the case appears destined for the Supreme Court.


The appeals court’s decision tossed out the ObamaCare subsidies on the grounds that the statutory language of the Affordable Care Act does not explicitly allow enrollees on the federal exchanges to receive premium tax credits.


"Because we conclude that the ACA unambiguously restricts the section 36B subsidy to insurance purchased on Exchanges 'established by the State,' we reverse the district court and vacate the IRS’s regulation," the court said.


Previous courts rejected that argument, saying Congress’s clear intent was to provide the subsidy help to everyone in the system.

And now, the time for a diversionary war has clearly come.

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NoDebt's picture

Don't worry, Roberts will overturn it when it gets to the Supreme Court.

But for now, you may celebrate as if Obamacare was just killed.

pods's picture

Hmmm, will this help our hurt our consumer driven GDP?


nuclearsquid's picture

hahaha fuck you, imperialist kenyan.


max2205's picture

The FSA would be pissed if they were smart enough to figure it out

NotApplicable's picture

Thankfully for them, there's HuffPo, et al.

Thing is, it will seriously cut into the time needed to start WWIII.

Stackers's picture

Written and passed by Deomcrat controlled Congress and signed by Democrat President. They had complete controll to write whatever law they wanted and turned the whole thing into a pay-off, special exemption via Presidential Super Pinky Promise joke of the legislative process.

GetZeeGold's picture



Tis a sad day for the Motherland comrades.

NuckingFuts's picture

When the ACA fails just wait for them to push through single payer fully socialized medicine. This act was created to fail to do just that.

TahoeBilly2012's picture

How to build a New World Order => Help people over here, while you kill people over there, then switch and do the opposite until all rats have been trained to take what they get and fight when they are told to fight. Obamacare is just a 
"bridge" to trhe future.

onewayticket2's picture

maybe they should have read the law before they passed the law....

Bananamerican's picture

“It is most likely that today’s split decision, which would take away premium subsidies for almost five million low- and moderate-income people, will never go into effect,” Ron Pollack, executive director of Families USA, said in a statement.

The administration is expected to appeal the panel’s decision to the full 11-member appeals court. In the last year, Obama has added four judges to the D.C. Circuit court, giving Democratic appointees a majority for the first time since the mid-1980s.

dontgoforit's picture

Repeal it all.  No one ever says anything about how the introduction of Medicare and Medicaid was the launching point for stratospheric medical costs.  50 years ago, when I was a teenager, you could go to your doctor for $5 or $10 or he would come to you. Enter Medicare/ much for those visits now?  And a major surgery can set you back a half million dollars.  It's a baked potato for the insurance companies and politicians.

Bananamerican's picture

Naw, just the fix is always in somewhere in this bullshit country...
As we history fans know, the only thing that stops it all is internal, Soviet/Roman (insert empire) style, collapse.
When we reach that point of maximum citizen indifference....

Save_America1st's picture

NuckinFuts above is correct.  Same thing I thought of immediately and was going to post until I saw his post.  They knew this thing was going to be a disaster from the start.  It was DESIGNED to be a disaster so that they could ultimately push us right into a single-payer system.  That's what they wanted all along, but knew they could never get there until they destroyed the current system first and suplanted it with this fucking nightmare.  Then everyone will scream for another solution which this treasonous government full of Fascist Marxists already has ready to go:  single-payer, full government death care.

Syrin's picture

Don't worry.   All the liberal f'tards will get their free shit as soon as the NSA continues their blackmailing of Benedict Roberts just as they did with the first ruling.

dracos_ghost's picture

Read the whole appeals response.

[Translation] "Yeah well, it's illegal but we're not going to shut it down and the Feds still have to provide subsidies".

Bunch of noise. Business as usual.

Just like Mental Health Parity and Addiction Equity Act (MHPAEA)), aka TARP, had little to nothing to do with mental health care -- ACA had little to nothing to do with affordable healthcare. It was a usurpation by the executive branch to seize congressional powers and give Obammy absolute power. And We the Sheeple allowed it to happen. Welcome to the Republic of Progressive Fascists.

Save_America1st's picture

I agree...only I would add the word "Banana" in your last sentence. haha ;-)

corporatewhore's picture

just curious as to whether that was Bush's plan when he decided he'd cover all prescriptions in his care package?

TeamDepends's picture

Everyone, you must go see "There's No Place Like Utopia" by Joel Gilbert.  It shines a brilliant spotlight on the progressive/socialist/communist cockroaches trying to hide in the shadows.

pods's picture

Well Bush's handlers wanted more power.

Bush probably just likes Donut Holes.


buyingsterling's picture

Americans still have a spine when it's absolutely necessary. I don't see them laying down for single payer after increased govt. involvement has so recently been disastrous.

Fish Gone Bad's picture

Medicare made a lot of physicians rich.

WillyGroper's picture

I don't see it as that simple. Enter the parasitic insurance industry, trial lawyers, diktats on one size fits all death by injection & you've got the perfect formula for the spice defying gravity. 

I too remember when getting sick did not bankrupt you for either the visit or the meds.

Greed gone viral.

JRobby's picture

But its soooo long, and we have parties to go to!

El Vaquero's picture

"maybe they should have read the law before they passed the law...."


But how else would they have found out what's in it without passing it first?



Vampyroteuthis infernalis's picture

Next you are going to tell me Pelosi cares???

El Vaquero's picture

Of course Pelosi cares.  Who's goiing to pay for her botox now?

tvdog's picture

She's exempt from the ACA. It's in the bill she didn't want anybody to read.

Colonel Klink's picture

OT but if you really want to vomit, check this out:

WARNING:  Don't have a full stomach, be eating, or holding any sort of weapon while watching this.

PoliticalRefugeefromCalif.'s picture

..impossible, they would still be reading.. besides it keeps changing. Botoxnancy wasn't lying for the first time in her career and we just laughed at her.

Looks like ObamaCare was another bridge to nowhere..

A Nanny Moose's picture

If you like your healthcare law, you can keep your healthcare law.


Pure Evil's picture

Kinda like that "Bridge to Nowhere" in Alaska, eh?

PoliticalRefugeefromCalif.'s picture

whoa.. guess I should read through eh?

sorry about rolling my wheelchair across your toes.

DoChenRollingBearing's picture



ObamaCare delendum est.

Even more so for any socialized medicine they may pass in the future.

Freddie's picture

I would say the Republicans are cowards but they are in bed with the evil Democrats.  

Da Yooper's picture

LMAO the FSA are now going to get a bill for their free shit.


Outstanding LOL


I can hear the whining already

Pure Evil's picture

Well, you'd think the FSA would have figured it out by now since Obama failed to pay for their mortgages, utilities, and car notes.

whotookmyalias's picture

Many of them also suffer from ADD, so they soon forget what they asked for or were promised.  But they know voting Dem makes them feel happy all over.

Freddie's picture

I think he is.   I see his people with new cars, free food, free phones, free medical, welfare, new houses and the list goes on.  I am sure they get credit cards and the debt gets written off.   I have seen entire neighborhoods rebuilt with new houses and they are nice houses with property. 

I go in the eye doctor and I was the only one paying.  Blacks and hispanics were getting everything free.  No cheap glasses for them either.

CheapBastard's picture

There would be riots in the streets of Detroit…if anyone were there to riot. Unfortunately, they all moved to places like Houston, Dallas, etc where the FSA still thrives.

pupdog1's picture

Detroit has run out of somebody else's money.

whotookmyalias's picture

Not if they keep convincing everyone to give up what they were promised.

XitSam's picture

Executive Order fix on the way.

A Nanny Moose's picture

The State: Ideas so great, they have to be mandatory.