Obamacare’s Continuing Legal Jeopardy

by Ramesh Ponnuru

The design of Obamacare, I write in Bloomberg View today, handed its opponents a weapon. If a state refuses to establish a health-care exchange, its residents aren’t eligible for Obamacare’s tax credits–and also not subject to some of its taxes and regulations. Opposing states can cripple the law.

The administration’s response to the impending failure of its signature legislation — a failure resulting entirely from its flawed design — has been to ignore the inconvenient portion of the law. In May, the Internal Revenue Service decided it would issue tax credits to people who get insurance from exchanges established by the federal government. It has thus exposed firms and individuals to taxes and penalties without any legal authorization. Obviously, that situation sets the stage for lawsuits.

The plaintiffs will have a strong case. . . .

Health-policy specialists and people who closely follow conservative and libertarian websites are aware of this issue. I’m guessing it’s news to a lot of Bloomberg readers. 

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