In a new lawsuit this week, some Obamacare payments were ruled unconstitutional. The Obamacare law promises reimbursements to health insurers who offer reduced-cost insurance coverage to Americans in lower-income brackets. According to the text, the government is supposed to “make periodic and timely payments” to cover those costs.
However, the law never specifies how those payments are to be made. It’s one of the many sloppy features of Obamacare.
Therefore, the Obama Administration first asked for appropriations through Congress in order to fulfill the payments, as is the proper procedure. The Constitution says, “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”
Yet Congress never granted the requested appropriations.
Subsequently, Health and Human Services stepped up and decided “they could continue to pay these required reimbursements.” They further claimed that “said payments were like “other appropriate entitlements like Medicaid” that are covered by permanent federal funds and not subject to an annual appropriation.”
Last year, the House of Representatives sued the president over how Obamacare was being enforced. Just this week, Judge Collyer “ruled the administration is violating a provision of the law by paying promised reimbursements to health insurers who provide coverage at reduced costs to low-income Americans.” “Paying [those] reimbursements without an appropriation thus violates the Constitution,” she wrote. “Congress is the only source for such an appropriation, and no public money can be spent without one.”
The Obama Administration is certainly going to appeal the ruling. But the lawsuit highlights once again the fraudulent nature of Obamacare. Those who wrote Obamacare knew there were going to be actuarial losses to the insurance companies, and he made broad vague promises to cover those losses. Now the insurance companies are stuck with the bill and continue asking what was promised to them. Why was the process never specified in the first place? Why are the losses so large? The entire Obamacare structure was weak and continues now to fail. Is this what was really supposed to happen in the first place? While we endure this grand insurance experiment, the health care system in this country continues to worsen.