The ObamaCare Meltdown Begins

By Arnold Ahlert (Bio and Archives)  Thursday, May 30, 2013 

IRS of stealing 60 million medical records belonging to 10 million Americans

Canada Free Press

While Americans remain focused on the IRS’s targeting of conservative groups applying for tax exempt status, two recently filed lawsuits reveal a far deeper level of alleged corruption at the agency. On May 2, a group of small businesses challenged the IRS’s attempt to illegally implement health insurance subsidies contained in the Affordable Healthcare Act, aka ObamaCare.On May 14, it was revealed that a class action suit has been filed by a California-based HMO, accusing the IRS of stealing 60 million medical records belonging to 10 million Americans.

The small business group’s suit, filed in the U.S. District Court for the District of Columbia, is the direct result of the Supreme Court’s decision that the part of the healthcare bill requiring Americans to purchase health insurance was constitutional. At the same time, the Court ruled that the federal government could not require states to set up the state-run exchanges necessary to facilitate the purchase of such insurance. As a result, 27 states have opted not to set up exchanges, forcing the federal government to fill the vacuum.

The employer mandate contained ObamaCare requires businesses to offer health insurance to employees, if they have at least 50 full time employees, defined as anyone working 30 or more hours per week. The law also provides IRS-implemented subsidies to help low-income people purchase insurance through the exchanges “established by the state.” If a company doesn’t offer its uninsured workers a policy and those workers end up getting a subsidy, the company will have to pay a fine.

The rub is the aforementioned phrase “established by the state.” The business group contends the subsidy can only be administered in states where the state itself has established the insurance exchange. They contend the IRS is ignoring the law’s constitutional limitations and illegally setting up subsidies in every state, forcing the employers to adhere to the law’s mandates. The IRS’s lawyers contend the language of the statute allows them to set up subsidies regardless of who is running the exchanges.

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Reposted with permission.