A federal judge ruled Thursday that the Obama administration is unconstitutionally spending federal money to fund the president’s health care law.
The ruling from U.S. District Judge Rosemary Collyer is a win for House Republicans who brought the politically charged legal challenge in an effort to undermine the law.
At stake is $175 billion the government is paying over a decade to reimburse health insurers for reducing co-payments for lower-income people.
The House argued that Congress never specifically appropriated that money and has denied the administration’s request for it. It says the administration is spending the money anyway, exceeding its constitutional authority. The administration has said it is using other, previously approved money.
Collyer issued an order stopping further reimbursements, but said it would not take effect pending an appeal.
House Republicans authorized the lawsuit in 2014 over Democratic objections. The House had already voted dozens of times to repeal all or parts of the law known as “Obamacare,” but most of those efforts went nowhere in the Senate and with President Barack Obama in the White House.
The disputed subsidies help lower-earning people afford out-of-pocket costs such as annual insurance deductibles and co-payments when they visit doctors.
The White House had earlier argued that the House had no legal authority to pursue its lawsuit, but Collyer rejected that argument and allowed the case to proceed.
The administration is expected to appeal Thursday’s ruling to the U.S. Court of Appeals for the District of Columbia Circuit.
Collyer is a George W. Bush appointee nominated to the court in 2002.
(AP)
4 Responses
Hooray for Republicans. They did nothing for healthcare during the Bush years and when the Democrats try to finally do something they just throw up obstacle after obstacle. I hope that they will feel proud that people will now have higher deductibles. Republicans gave us the Iraq War and Donald Trump. Time to vote then all out
I don’t see how this lawsuit will benefit the average middle-class citizen.
It will help prove that Obamacare is unconstitutional and by blocking parts of the funding it will totally fall apart (it is anyways already) and then we can revamp the entire health insurance in a more capitalist and competitive way…
If Obamacare falls apart we will get a single payer system.