Congressman Jim Bridenstine on Court Ruling Invalidating Obamacare Subsidies

Statement

Date: July 22, 2014
Location: Washington, DC

"Today a federal appeals court eviscerated Obamacare by ruling that billions of dollars of federal subsidies are illegal. The purpose of the Obamacare subsidies was to encourage states to set up healthcare insurance exchanges. When 34 states including Oklahoma refused to create exchanges, the Administration created federal exchanges to provide subsidies, contrary to the clear language in the law," said Congressman Jim Bridenstine. "This is another example of the President attempting to change the law by decree, which the D.C. Circuit Court correctly opposed today."

As Senior Circuit Judge Raymond Randolph of the U.S. Court of Appeals for the District of Columbia said, "Section 36B plainly makes subsidies available in the Exchanges established by states." The law does not provide for subsidies to individuals who bought health insurance through federal exchanges.

The decision was handed down by a three judge panel in a 2-1 ruling. The Obama administration is expected to ask the full D.C. Circuit Court to reverse the panel's decision. The 4th Circuit Court of Appeals also ruled today, taking the opposite position by declaring that the language in the law was not "determinative". Bridenstine responded, "The language and the intent of the law is clear. The intent was to encourage state exchanges and not to offer subsidies through a federal exchange."


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