Obamacare Challenged in Suit Over Tax Subsidies

Thursday, 02 May 2013 03:26 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Opponents of the Obama administration’s health-care overhaul sued the U.S. over an Internal Revenue Service rule that extends tax subsidies to individuals in states that declined to set up insurance exchanges authorized under the law.

The individual subsidies by law were supposed to be available only in states that had agreed to set up insurance exchanges as clearinghouses for the purchase of medical coverage, according to a complaint filed today in federal court in Washington.

By providing the subsidies in the 33 states that declined to set up exchanges, the healthcare overhaul, known as the Affordable Care Act, makes insurance “less unaffordable,” according to the complaint. It subjects some people to “a requirement to purchase costly, comprehensive health insurance that they otherwise would forgo,” the plaintiffs claimed.

At the same time, the extension of the allegedly unlawful subsidies triggers financial penalties against some businesses that don’t offer employees health coverage, according to the complaint.

The lawsuit was filed by seven individuals and businesses from seven states that have opted not to set up their own insurance exchanges. The federal government will operate exchanges in states opting out of establishing their own.

The case is Halbig v. Sebelius, 13-cv-00623, U.S District Court, District of Columbia (Washington).


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Prosecutor: White House Intruder Had 800 Rounds of Ammunition in Car

Monday, 22 Sep 2014 15:39 PM

The decorated Iraq war veteran who scaled a fence on Friday night and got into the White House had over 800 rounds of am . . .

Cartel Threats Force Cancellation of Border Protest Convoy

Monday, 22 Sep 2014 15:18 PM

A planned protest to block entry by illegal migrants along the Southwest border has been cancelled because protest organ . . .

White House: Radicalized Americans Investigated After Returning to US

Monday, 22 Sep 2014 14:56 PM

The FBI is conducting an active investigation into some of the 100 Americans who went to the Middle East to join up with . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved