New Lawsuit Places Obamacare in Peril

Obamacare is in serious danger. After weathering a Supreme Court challenge that threatened to gut the law by striking down the individual mandate, major pillars — the business penalty, the individual penalty, and the generous health-care subsidies that make the exchange plans affordable — are being challenged in court, with at least two lawsuits potentially dealing mortal wounds before New Year’s Day.

The chink in the armor is that Obamacare subsidizes plans for people “enrolled in through an exchange established by the state under section 1311 of the Patient Protection and Affordable Care Act,” but in a move Democrats didn’t expect, 34 states didn’t establish an exchange. And if people aren’t able to access these subsidies, they can’t be penalized.

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