Press Releases

Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) released the following statement after a D.C. Circuit court ruled in Halbig v. Burwell that Obamacare’s premium subsidies are invalid in nearly three-quarters of states across the country:

“Today's decision by the appellate court reflects a studied approach of judicial review. The court construed the actual language of the statute which clearly applies only to state exchanges. It appropriately rejected arguments about intentions, feelings or excuses about sloppy drafting. That is what courts are meant to do.

“This ruling identifies just another example in a long list of fundamental failures plaguing President Obama’s signature legislation. This continues a disturbing trend of unconstitutional and lawless actions from this administration and I am encouraged by the courts actions.”
 

Background:

The Affordable Care Act (ACA) attempts to make health insurance more affordable by granting tax subsidies to certain individuals who purchase their insurance in an “exchange established by the State under Section 1311” of the ACA. This provision was intended to encourage states to create their own Exchanges. However, 36 States elected not to establish a State Exchange but instead to utilize an Exchange established and administered by the federal government.

In May 2012 the Internal Revenue Service (IRS) issued a rule to interpret the ACA in a manner which would allow for tax subsidies to be available to eligible individuals who purchase insurance through an Exchange regardless of whether it was established by a State or the federal government.

On February 5, 2014, the House Oversight and Government Reform Committee released a report finding that IRS and Treasury officials were concerned regarding the authority to interpret federal exchanges as an “Exchange established by the State" which is required to expand federal subsidies.

 ###