Obama Administration Pulling An Illegal End-Run Around The States On Obamacare


One of the best reasons for the states refusing to implement the Obamacare health insurance exchanges is that the Obamacare law provides no provision for subsidizing insurance policies through the federal exchanges. If the states don’t set up the exchanges, the federal government cannot disperse the subsidies and tax credits that are a key element of the overall law.

Except, the Obama administration has decided they’re just going to ignore that provision of the law and do an end-run around the states refusing to implement the exchanges and at least one state is taking the feds to court over it:

Federal bureaucrats have already begun rewriting the law when the provisions of the actual statute prove inconvenient. When it became obvious that many states would refuse to create exchanges, the Obama administration decided to funnel tax credits and subsidies through federally-created exchanges, ignoring clear language in the law indicating that such premium-assistance was restricted to state-run exchanges. The IRS recently finalized a regulation signaling its intention to illegally provide premium assistance through federal exchanges.

This outrage prompted the state of Oklahoma to file an amended complaint in the U.S. District Court for the Eastern District of Oklahoma. The state points out that “The State of Oklahoma has exercised its right not to establish an Exchange” and that the provisions of ObamaCare “not only permit the State of Oklahoma to make this policy choice, but also created a mechanism … by which the State of Oklahoma can put its decision into effect.” It goes on to show that “The [IRS] Final Rule renders the mechanism inoperative.” In other words, Oklahoma complied with the provisions of the law and now the IRS has illegally ignored those provisions.

One of the greatest travesties of Obamacare isn’t just that it is going to make health insurance dramatically more expensive, but also the assault it represents on the rule of law. Obamacare is such a monstrosity, it is such a maze of policy, that complying with the letter of the law is nearly impossible.

Not only are states and insurance companies expected to begin complying with the law without fully being aware of specifics such as the Essential Health Benefits that will be mandated, but when the federal government finds a part of the law they don’t like they simply ignore it.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters.

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  • Scooter


  • Clarence A. Herz

    We live in a law less society. I’m kind of liking it. I don’t pay attention to laws anymore either. Especially ones handed down by the federal government.

  • SigFan

    Why would Obama start obeying the law now? He doesn’t have to face another election – he has more “flexibility” now, remember. The single most lawless administration in American history – thanks again all you useful leftist idiots.

  • WOOF

    Keep fighting, don’t set up exchanges.
    The feds will .
    In the end Obama will get just what he wanted from day one.
    The largest possible client pool,

    larger the pool , lower the costs.

    Federal take over of health insurance.
    Single Payer, that’s the train, that’s the ticket.
    Getting off the track, secretly appreciated.

    • mickey_moussaoui

      There simply is no evidence to support your claim of a larger pool/lower cost especially when
      you factor in the cost of the bureaucracy to support this scam

  • sbark

    operating an Obamacare exchange would be illegal in 14 states. Alabama, Arizona, Georgia, Idaho, Indiana, Kansas, Louisiana, Missouri, Montana, Ohio, Oklahoma, Tennessee, Utah, and Virginia have enacted either statutes or constitutional amendments (or both) forbidding state employees to participate in an essential exchange function: implementing Obamacare’s individual and employer mandates.
    ………now here is a ballot measure to push…….

  • Yogibare

    An articl in the Wall Street Journal of Nov. 19 telling that Obamacare is not a sure thing. The States can opt for the federal program so the burden goes to the Fed’s. The federal gov. does not have the funding to keep it afloat because the money has not been allocated.
    This whole Obamacare piece of crap is half-baked from the beginning. The majority of States can refuse and the whole thing will have to go to the House for money! The federal gov. is at the fiscal cliff–remeber. Where does the money come from?
    The country is “broke”. At some point the spending much stop or there needs to be serious tradeoffs of one spending program for another. The congress and WH are not in an agreeing frame of mind.

    • Speed

      So now the feds are just changing (ignoring) the rules so they can do something that’s already deemed illegal in the current version of Obamacare. Okay-they can’t even follow their OWN laws-what’s the big surprise here? This is Obama’s game plan;”If we find a part of our Health Care Plan that we can’t follow,we’ll just ignore it and make a new ‘unofficial rule’ that works in our favor.”

  • Guest

    “Congratulations to the Democrats and young people! You now own it and you can’t blame Bush.
    next terrorist attack you own it. Can’t get a job after graduation,
    you own it. Sky rocketing energy prices due to Obama’s EPA shutting down
    the energy producing states, you own it. A nuclear Iran, you own it.
    Bowing to Russia, you own it. Another severe recession, you own it.
    volatile border with Mexico, you own it. Trouble getting good health
    care, you own it. Higher health insurance costs and health care costs,
    you own it. No budget, you own it. Our allies mistrust, you own it.
    Another trillion of debt, you own it. More Benghazi situations, you own
    No one willing to join the military, you own it. Trouble getting a loan to buy a home, you own it.
    More dependency on food stamps, you own it. Trouble finding good employment, you own it.
    Several part time jobs instead of a good job, you own it. A World Government, you own it.
    UN governing the United States instead of ourselves, you own it. A
    Senate that will not bring any legislation to the table even if it is
    “Dead on Arrival”, you own it. China controlling our world trade
    trampling all over us, you own it. Loss of our freedoms as we have
    known it in the past, you own it. A dictatorship instead of a democracy
    that follows the Constitution, you own it. Less take home pay and
    higher living costs, you own it. Driving a car that looks like a toy,
    you own it.
    More government corruption and lies, you own it. More
    toleration of extreme and fanatical Islamists, you own it. Terrorist
    attacks called work place incidents, you own it. Your revenge instead
    of love of country, you own it. President George Bush is out of it now
    (and has been since day one of the Obama fiasco), and there is not
    another good man for you to vilify and lie about. In a way I am relieved
    that another good man will not be blamed when it was impossible to
    clean up this mess you voted for. Have a good day. God bless the United
    States! God is our hope now.”

    • Paladin

      And some people don’t understand why some of us are contemplating secession.

  • Lynn Bergman

    When North Dakota’s legislature embraces anything other than an independent state-devised and funded exchange, our elected representative will “own” Obamacare and all of the misery it creates in our state. Keep that in mind legislators! Do you want to be remembered as “Republi-crats” for an eternity?

  • Harold

    You know these presidents come and go, and each one has a chance to be remembered as a great man and president. Very few are ever remembered in that light, why aren’t they remembered for being great leaders, because when they pull a shady deal that’s against the law, their first reaction instead of coming clean and just telling the truth to the american people falls to their first instinct which is to lie. We’ve had presidents in the past that did this to us, Nixon is one, and now we have Obama who seems to be incapable of telling even the smallest truth to the american people. What a sad political system we have in america today which ensures that both parties always seem to pick the best liars and worst crooks to lead our country and ultimately we the people vote for them and put them in power.

    • Michael Angel

      That’s the way it used to work! Now, it seems we can make elections come out any way we want them to. Does anybody in his right mind believe we just had a “fair” election? Just show me the 107 percent who voted in Philadelphia! I don’t think our forefathers ever anticipated Chicago Politics when they drafted the constitution!

  • A Patriot of The Revoution

    When is someone going to take action against this up-and-coming tyrant and start impeachment proceedings? We are treading dangerously close to augmented civil unrest every time this guy circumvents congress and the law. Beware Sheeople!

    • Neiman

      Not until the public mood allows them. Right now, the GOP knows it would hurt them and their income/careers are of greater importance to them than the nation. I fear by the time the people wake up, it will be too late, we will have a liberal Supreme Court to rubber stamp his every decision.

    • Michael Angel

      Go ahead – impeach him. Without the Senate he can’t be removed from office! Short of a miracle, we are stuck with this loser for another 4 years!

  • fedupny

    For the sake of the Thanksgiving holiday, we should all give thanks to who really enabled the legislation to take hold. We should start referring to the Affordable Care Act as “JohnRobertsCare”.

    “As the chances for repealing Obamacare recede – with the states beginning to set up the Obamacare “health exchanges” and the putative leader of the Republicans, Speaker John Boehner calling the nationalization of health care the “law of the land” – I think it’s time to pay homage to the spineless jurisprudence of the man […]”


  • Michael Angel

    All hail King Obama! When will people realize we have an imperial dictator hell bent on turning this country into a socialist quagmire! The “new normal” is to tell the public what it wants to hear and then do whatever it is you want to do saying you have a “mandate.” It’s up to the states to stand up for their citizen’s rights now.