No, The Latest Challenge to Obamacare Isn’t a Bug. It’s a Feature.

It’s funny watching Rachel Maddow. She just characterized the new challenge to Obamacare as being “based on a drafting error, almost a typo”. Nothing could be further from the truth.

The challenge to Obamacare is based on the law’s statement that Federal subsidies would only be available to people in states that made their own exchanges; despite the clear language of the law, the IRS said no, everyone’s eligible for subsidies.

Supporters of the ACA insist that that’s what the framers of the law *really* meant. Otherwise, how would everyone get coverage? (They neglect to mention the fact that such “drafting errors” would be less likely to occur if they gave more than thirteen hours to review a 1,200-page law.)

But they’re wrong. The language was a specific incentive to drive states to build exchanges.

Obamacare architect Jonathan Gruber explains: “What’s important to remember politically about this is if you’re a state and you don’t set up an exchange, that means your citizens don’t get their tax credits—but your citizens still pay the taxes that support this bill. So you’re essentially saying [to] your citizens you’re going to pay all the taxes to help all the other states in the country. I hope that that’s a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these exchanges.”

Don’t take my word for it. Watch Mr. Gruber saying these words in 2012 here, around 31:38.

I know you’re shocked that Rachel Maddow would make such a blatantly false statement.

This is just what I see. What do you see? (Your email won't be sold or used for spam.)

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