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Senate O-Care Bill Limited Exchange Subsidies To States

From Breitbart:

The Senate HELP Bill Limited Exchange Subsidies to Compliant States (but No One Mentioned It)

By John Sexton | July 29, 2014

… The Halbig case is the one about whether or not tax subsidies can be delivered to people who enrolled on a federal exchange…

One [of the Senate's] version[s] of health reform [is] known as the HELP bill (because is came out of the Senate Committee on Health, Education, Labor & Pensions). The HELP bill is significant because it explicitly denied subsidies to states which refuse to set up a federally compliant exchange.

More specifically, the bill outlines a three step process for states. They can a) agree to set up their own exchange and comply with all the new regulations, b) ask HHS to set one up and comply or c) not comply.

For those states who don’t comply, there is a four year waiting period before the feds step in. During that time, residents of the state not in compliance are not eligible for subsidies.

Here is the relevant portion of the bill as released in June 2009:

ELIGIBILITY OF INDIVIDUALS FOR CREDITS.
—With respect to a State that makes the election described in subsection (a)(3), the residents of such State shall not be eligible for credits under section 3111 until such State becomes a participating State under paragraph (1).

A summary of the bill from a few months later describes the subsidy issue (though it says it is six years not four):

States have three options regarding their participation in the Gateway. An “establishing state” is one that proactively seeks such status to launch its Gateway as early as possible and which meets the requirements of the law. A “participating state” requests that the Secretary establish an initial Gateway once all necessary insurance market reforms have been enacted by the state into law, and other requirements have been met. In a state that does not act to conform to the new requirements, the Secretary shall establish and operate a Gateway in the state after a period of six years, and such state will become a “participating state.” Until a state becomes either an establishing or participating state, the residents of that state will not be eligible for premium credits, an expanded Medicaid match, or small business credits…

Now how is it our media guardians have reported this minor detail? Which has been known since 2009.

This article was posted by Steve Gilbert on Wednesday, July 30th, 2014. Comments are currently closed.

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