A new legal challenge to ObamaCare comes from a group of individuals and small business owners in six different states, who charge that the Internal Revenue Service has illegally expanded ObamaCare’s employer mandates, contradicting the explicit language of the legislation.
“The Affordable Care Act authorizes health insurance subsidies to qualifying individuals in states that created their own healthcare exchanges,” the group explained in a press release. ”Those subsidies trigger the employer mandate (a $2,000/employee penalty) and expose more people to the individual mandate. But last spring, without authorization from Congress, the IRS vastly expanded those subsidies to cover states that refused to set up such exchanges. Under the Act, businesses in these nonparticipating states should be free of the employer mandate, and the scope of the individual mandate should be reduced as well. But because of the IRS rule, both mandates will be greatly enlarged in scope, depriving states of the power to protect their residents.”
To date, 33 states have chosen not to create the exchanges in question.
Plaintiffs offered a number of different reasons for joining the suit: “One business can only afford to employ some full-time workers without providing health insurance, another wants to convert its employee health insurance to a completely consumer-driven health plan, and several individual plaintiffs (most of them self-employed) object to paying for costly insurance packages that they neither need nor want.”
Representatives of the organizations coordinating and supporting this lawsuit had some tough things to say about the IRS action, which they regard as “flagrantly illegal.” MORE