Obamacare tax credits for federal marketplace blocked by Judge


D

D. Stussy

http://www.bloomberg.com/news/2014-09-30/oklahoma-judge-blocks-obamacare-tax-rule-on-non-exchange-states.html

U.S. Judge Blocks Obamacare Rule for Non-Exchange States
By Andrew Harris Sep 30, 2014 2:09 PM PT

An Oklahoma federal judge dealt a blow to President Barack Obama’s
health-care law, invalidating IRS rules aimed at making policies affordable
for consumers around the country.

U.S. District Judge Ronald White in Muskogee ruled today that subsidies, in
the form of tax credits, apply only to consumers in the 14 states that have
set up insurance marketplaces and not to individuals who buy insurance on
the federal marketplace, as in Oklahoma. An Internal Revenue Service rule
says needy customers in both the federal and state marketplaces are eligible
for subsidies.

“The court is upholding the act as written,†White said, citing language in
the law that limits subsidies to those in states with their own exchanges.
He called the IRS regulations “arbitrary, capricious, an abuse of discretion
or otherwise not in accordance with law.â€

....
 
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M

Mark Bole

http://www.bloomberg.com/news/2014-09-30/oklahoma-judge-blocks-obamacare-tax-rule-on-non-exchange-states.html


U.S. Judge Blocks Obamacare Rule for Non-Exchange States
By Andrew Harris Sep 30, 2014 2:09 PM PT

An Oklahoma federal judge

Didn't this already happen in some D.C. court several months ago? I
thought we're all just waiting for en banc review (if I got that
terminolgy right), appeals, etc to play out, up to and including SCOTUS
if necessary.

Meanwhile, subsidies (advance credit) are already being paid, AFAIK, and
none of this changes TY2014 filing, does it?
 
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N

njoracle

D. Stussy said:
http://www.bloomberg.com/news/2014-09-30/oklahoma-judge-blocks-obamacare-tax-rule-on-non-exchange-states.html


U.S. Judge Blocks Obamacare Rule for Non-Exchange States
By Andrew Harris Sep 30, 2014 2:09 PM PT

An Oklahoma federal judge dealt a blow to President Barack Obama’s
health-care law, invalidating IRS rules aimed at making policies
affordable for consumers around the country.

U.S. District Judge Ronald White in Muskogee ruled today that subsidies,
in the form of tax credits, apply only to consumers in the 14 states
that have set up insurance marketplaces and not to individuals who buy
insurance on the federal marketplace, as in Oklahoma. An Internal
Revenue Service rule says needy customers in both the federal and state
marketplaces are eligible for subsidies.

“The court is upholding the act as written,†White said, citing language
in the law that limits subsidies to those in states with their own
exchanges. He called the IRS regulations “arbitrary, capricious, an
abuse of discretion or otherwise not in accordance with law.â€

...
As stated in the above linked article: "White delayed implementation of
his ruling until after an appeal." There was another Judge who also
ruled against the subsidies for the same reasoning. That judge also
delayed it until after appeal. I suspect this will get to the Supremes
before it is finally settled, a year (or two) from now.
 

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