MONTGOMERY, Ala. — Alabama Attorney General Luther Strange lauded a ruling today by the U.S. Court of Appeals for the District of Columbia that eliminates the federal government’s ability to provide subsidies on federal insurance exchanges under ObamaCare.
The State of Alabama joined an amicus brief to the court arguing that the law allowed the IRS to distribute subsidies only for insurance purchased on state exchanges, not federal exchanges.
Many states, including Alabama, did not set up state exchanges.
“I am not going to set up a state-based exchange that will create a tax burden of up to $50 million on the people of Alabama,” Gov. Robert Bentley said in 2012. “As governor, I cannot support adding such a tax burden onto our citizens. The Affordable Care Act is neither affordable nor does it actually improve health care. Congress and the President have said they want to work together to solve the fiscal crisis facing this country, and I suggest they start with this health care bill.”
If the court of appeals ruling stands, it means that ObamaCare’s exchange-based subsidies, taxes, and penalties will not be enforceable in states that did not set up a state exchange.
“I am proud to have joined my fellow Republican Attorneys General in filing a brief in support of this result,” said Attorney General Strange. “This lawsuit has the potential to cripple ObamaCare and free millions of Americans from the individual mandate. The court’s decision was also a stinging rebuke to the Obama Administration for making up the law as it goes along, instead of following the law as it was passed by Congress.”
The amicus brief was filed in the case of Halbig v. Sebelius and was joined by the States of Alabama, Oklahoma, Georgia, West Virginia, Nebraska and South Carolina.
Jim Carnes, communications director for Alabama Arise, which supports the president’s healthcare law, said he believes the ruling will be overturned.
“This is a temporary setback,” he said. “I believe there’ll be a higher ruling that will restore it.”
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