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Federal Judge Rules ACA Payments Unconstitutional

May 17, 2016 // News


In a win for Republicans, federal district Judge Rosemary Collyer issued a ruling Thursday confirming that the Affordable Care Act did not allow for reimbursements to insurance carriers to make marketplace health insurance coverage more affordable.

The Obama Administration argued that the Affordable Care Act itself is the only authorization needed for the government to consent to the release of funds necessary to fulfill the key elements of the program. However, in her ruling Judge Collyer, a republican appointee noted that while the ACA did appropriate Section 1401 premium tax credit money, it did not provide the same appropriation for Section 1402 reimbursements to insurers.

Republicans have argued that without congressional authorization, the ACA reimbursements to carriers was unconstitutional. Critics of the suit argue that without government reimbursement to insurance carriers, most will pull out of the marketplace leaving fewer options for consumers and higher costs.

A summary judgement was granted to the House. However, Collyer stayed the injunction pending an appeal.

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