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OpenMarket: CEI Litigation

  • Obamacare: Cert Granted on Friday, and Gruber III on Saturday

    November 11, 2014

    It was very good news, delivered in a very surprising way. Shortly after noon last Friday, the Supreme Court announced that it would review our Fourth Circuit Obamacare challenge, King v. Burwell

    Ever since we filed the case with the Supreme Court this past July, we’d been hopeful that the Court would take the case. The likelihood of the Court accepting any case is extremely low, but there were several major factors in our favor. 

    First, the question involved is extremely important to millions of Americans, be they taxpayers, health insurance policyholders, or workers. (In most cases, they’ll be all three.) The issue is whether Obamacare health insurance subsidies are available nationwide, as the White House claims, or whether they are...

  • The Long National Nightmare of Dodd-Frank Is Almost Over

    November 10, 2014

    One of the prime reasons for the continuing economic uncertainty that bedevils so many ordinary Americans is the presence in law of the Dodd-Frank Act of 2010, which was meant to solve the problems of the financial crisis. In fact, by giving unelected bureaucrats Czar-like power over the financial system, it has caused the stagnation of that system, reducing the free flow of money through the economy and stopping businesses and citizens getting access to the credit that they desperately need.

    On November 19, however, a three-judge panel of the D.C. Circuit will hear arguments in a case brought by CEI and others challenging the constitutionality of this new bureaucracy. If the judges rule in our favor, Main Street and Wall Street should both breathe a sigh of relief.

    The grounds for our...

  • ObamaCare Failing to Make Insurance Affordable for Many Americans

    November 3, 2014

    The two most important Courts in the land are about to dive into the language and purpose of the Affordable Care Act (ACA), the “Obamacare” law. At issue is whether, under the specific wording of the ACA, the federal government may legally offer subsidies to residents of states that opted out of setting up their own health insurance exchanges. One of the Obama Administration’s central arguments is that the ACA has a single stated purpose—to deliver more affordable health insurance coverage to more Americans who previously couldn’t afford that coverage without support from either their employer or from government—and whether it is achieving that ought to be considered by the courts. As someone who actually works with a wide spectrum of individuals and employers to find affordable insurance, I hereby take up the Administration’s challenge. Here are four ways in which the ACA, as it...

  • Update: Where in the World is Jonathan Gruber?

    October 14, 2014

    Today the plaintiffs in King v. Burwell filed the last brief regarding the cert petition now before the Supreme Court. It effectively rebuts each of the government’s arguments against Supreme Court review. 

    For starters, there’s some interesting history about the government’s switch in its tactics on timing. When Obamacare was first being litigated several years ago and the government lost in the Eleventh Circuit, it quickly sought Supreme Court review even though there were no imminent deadlines facing it regarding Obamacare taking effect.  Now, on the other hand, we have, in the words of the reply brief, “billions of taxpayer dollars … pouring out of the Treasury without congressional authorization and millions of Americans … ordering their lives around...

  • Where in the World is Jonathan Gruber?

    October 9, 2014

    The Obamacare insurance exchange rule is being challenged in four cases, and each one of them has been active over the last two weeks. The IRS rule puts the Obamacare insurance subsidies, and their attendant penalties, into effect nationwide. CEI is involved in two of these casesKing v. Burwell, which we lost in the Fourth Circuit, and Halbig v. Burwell, which we won in a 2-1 D.C. Circuit panel ruling. We argue that this is contrary to the underlying statute, which provides for such subsidies only in states that have chosen to set up their own exchanges—a choice that 34 states have declined.

    The King plaintiffs have ...

  • Federal Obamacare Officials Once Recognized the Falsity of Their Current Argument about Tax Credits

    September 10, 2014

    ​The Obama administration has claimed that despite recurring language in the Obamacare law limiting tax credits to people who buy insurance on an “exchange established by the state,” such taxpayer subsidies are also available to people who buy insurance on the federal exchange, Healthcare.gov.  (The availability of tax credits triggers employer mandates and penalties in any state where the tax credits are available, and the tax credits contain work disincentives and ...

  • Court Ruling Imminent in Challenge to Illegal Obamacare Exchange Subsidies

    July 9, 2014

    According to the explicit language in the Affordable Care Act, tax credits for purchasing federally-regulated health insurance on the “Obamacare” exchanges are only supposed to be available "through an Exchange established by the State." Since 34 states have not set up an Obamacare exchange (leaving their residents to use the federal Obamacare exchange instead), it seems obvious that the credits are legally not available in those states.

    But the IRS decided to dole out the tax credits in those states anyway, allowing 87 percent of Healthcare.gov customers to...

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