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Gruber: States Without Exchanges Will Get No Subsidies

From Breitbart:

Obamacare Architect: States Without Exchanges Get No Subsidies

by John Sexton | July 24, 2014

Jonathan Gruber, a "key architect" of  Obamacare was caught on tape in 2012 saying states which do not set up an Obamacare exchange are not eligible for subsidies. His admission mirrors the arguments of plaintiffs in the Halbig case and has the potential to push Obamacare to the brink of collapse…

Supporters of the law have argued that the bill was poorly drafted. They claim the apparent limitation of federal subsidies to state-based exchanges was merely a legislative typo. And since it was a typo, they argue, courts should look to the intent of the lawmakers…

[In] a 2012 video of Obamacare architect Jonathan Gruber stating unequivocally that subsidies are not available in states which do not set up their own exchanges:

Q: The health information exchanges for the states and it’s my understanding that if states don’t provide them that the federal government will provide them.

Gruber: Yeah, so these health insurance exchanges…will be these new shopping places and they’ll be the place that people go to get their subsidies for health insurance. In the law it says if the states don’t provide them then the federal backstop will. The federal government has been sort of slow in putting out its backstop I think partly because they want to sort of squeeze the states to do it. I think what’s important to remember politically about this is if you’re a state and you don’t set up an exchange that means your citizens don’t get their tax credits. But your citizens still pay the taxes that support this bill. So you’re essentially saying to your citizens, you’re going to pay all the taxes to help all the other states in the country.

I hope that that’s a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these exchanges and that they’ll do it, but you know once again the politics can get ugly around this.

This is exactly what plaintiffs in the Halbig case argued, i.e. that limiting subsidies to state exchanges was intended to pressure states into setting up exchanges…

Coincidentally, the very same Jonathan Gruber was on ‘Hardball With Chris Matthews,’ back on Tuesday. And Chris Matthews asked him about the Halbig ruling:

Matthews: Let`s go to Jonathan. Jonathan, was this a typo, saying that only if you had a state exchange could you get a subsidy and therefore be required to participate, or was it some significant policy decision not to include states that didn’t have exchanges?

Gruber: Chris, it is unambiguous this is a typo. Literally every single person involved in the crafting of this law has said that it`s a typo, that they had no intention of excluding the federal states. And why would they?

Is Mr. Gruber lying now or was he lying then? Or both?

This article was posted by Steve Gilbert on Friday, July 25th, 2014. Comments are currently closed.

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