After months of anticipation, the Supreme Court ruled in favor of the Obama Administration in King v. Burwell and upheld the IRS’s authority to issue insurance subsidies on the federal insurance exchange as part of Obamacare. This decision gives cover to the abuses of an out-of-control agency and allows it to continue punishing Wyoming through the individual and employer mandate.
Under Obamacare, individuals that make less than $47,000 and families that make less than $97,000 are eligible for insurance subsidies on exchanges “established by a state.” However, when the IRS released its rule to enforce this provision, it made insurance subsidies available on state-based exchanges and the federal exchange. In Justice Antonin Scalia’s dissenting opinion, “The cases will publish forever the discouraging truth that the Supreme Court of the United States favors some laws over others, and is prepared to do whatever it takes to uphold and assist its favorites.”
Since the rule went into effect, 16,937 Wyoming residents have received insurance subsidies in violation of Obamacare’s text. Because these subsidies activate Obamacare’s individual and employer mandate, the IRS is subjecting Wyoming and 35 other states to billions in taxes and penalties in violation of a law passed by Congress.
The employer mandate will be thrust upon over 80 percent of Wyoming workers when it takes full effect in 2016. In addition, nearly 40,000 more Wyoming residents are currently subject to the individual mandate. Added together, nearly a third of the state’s population will suffer under Obamacare’s mandates because the Supreme Court upheld the IRS decision to arbitrarily enforce Obamacare against the wishes of Congress.
The Supreme Court ruled in a 6-3 decision that the IRS indeed has the authority to provide subsidies both on state exchanges and the federal exchange. Chief Justice John Roberts admitted in the majority decision that this statute must be interpreted to allow the law to expand health coverage. In a nutshell, Justice Roberts decided how he wanted to interpret this Obamacare statute in order to save Obamacare.
In John Roberts’ own words:
“Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them. If at all possible, we must interpret the Act in a way that is consistent with the former, and avoids the latter.”
What does this mean for Wyoming? Obamacare is here to stay and will continue to raise the cost of insurance. Last year, premiums across the board increased 53 percent. Young males in particular saw their premiums rise 102 percent. When deductibles and premiums are added up, the average insurance plan now costs over $6,500. And next year, insurers have requested another 24 percent increase.
To add insult to injury, Obamacare imposes enormous fines and penalties on employers and individuals who decide not to purchase insurance. Employers that can’t afford to offer insurance are fined $2,000 per worker. Individuals that opt out of Obamacare face a $325 penalty and in 2016 will be fined $695 for failing to comply. Both mandates amount to a $370 million tax increase on Wyoming businesses and residents.
King v. Burwell’s decision ends the last major legal challenge to Obamacare. Many hoped that if the justices struck down Obamacare’s subsidies, Congress would be compelled to unite around an Obamacare repeal plan. But the court’s failure to uphold the rule of law does not remove Congress’s enormous responsibility to repeal the President’s healthcare law. Obamacare continues to increase premiums, narrow doctor networks and clog emergency rooms. Repealing this disastrous law is more important now than ever.