It's time for White House to start sweating over legal challenge to Obamacare subsidies

From Philip Klein at the Washington Examiner:

At issue in the case are the subsidies that the federal government provides for individuals purchasing insurance through Obamacare. Though the text of the law says the subsidies were to go to individuals obtaining insurance through an “exchange established by the state,” a rule released by the Internal Revenue Service subsequently concluded that subsidies would also apply to exchanges set up on behalf of states by the federal government.

The case before the appeals court, Halbig v. Sebelius, is one of several challenging the IRS rule.

Were the case to succeed, it would mean that dozens of state governments opposed to Obamacare could significantly narrow its scope by refusing set up exchanges, thus preventing residents from claiming subsidies. In those states, employers wouldn't be penalized for failing to offer qualifying insurance (which is triggered by workers seeking federal subsidies), meaning that anti-Obamacare states could become more attractive to businesses trying to get around the employer mandate. It would also increase pressure on Congress to undo the individual mandate.

On the flip side, such a ruling would also place pressure on anti-Obamacare governors, who would be forced to decide whether to stand firm in opposition to Obamacare or to set up their own exchanges so residents can apply for subsidies.

The Obama administration has argued — and the lower court affirmed — that viewed in its entirety and taking into account the legislative history, Congress obviously intended for subsidies to go to individuals purchasing insurance on all exchanges regardless of which entities were running them.

But in oral arguments Tuesday, that wasn’t necessarily obvious to a majority of the three-judge panel, which seemed divided on the question. ...................

The judge prodded Carvin to explain why Congress saw it as such an advantage to have states rather than the federal government manage the exchanges. “Why does it matter who establishes the exchanges?” he asked. “Your argument makes no sense.”

He said, “Who cares?”

At that point, Randolph jumped in and said, “Ben Nelson.”

Carvin agreed, arguing that Nelson, the former senator from Nebraska, was withholding support for Obamacare, in part, because he wanted exchanges to be state-based rather than federally-run. To get the law across the finish line, the Senate voted to make exchanges state-based, with the powerful inducement of generous subsidies.

So to get Ben Nelson's vote, Congress placed a provision which mandates that the exchanges be State Based, but the Regime is arguing it doesn't matter.

Just like the sold the ACA fine as not a tax, but argued in from of SCOTUS that is was a tax.

Liars.