Five States Win $839 Million Lawsuit Against Obamacare Program’s Unconstitutional Tax on States

image_pdfimage_print

The Affordable Care Act (ACA), better known as Obamacare, requires medical providers to pay a Health Insurance Provider Fee, even though the ACA exempts states from paying that fee when providing health care.  The US Department of Health and Human Services (HHS) during the Obama era created a regulation requiring states to pay the fee anyway, a fee that is styled as a tax on the states.  Texas sued in federal court and was joined by Indiana, Nebraska, Kansas, and Louisiana- the states were awarded a total of $839 million.   The mainstream media is ignoring this story because it supports President Trump’s contention that parts of Obamacare are illegal and should be repealed.

Texas Attorney General Ken Paxton is leading a five-state coalition that on Thursday won an $839 million judgment against the federal government in an Obamacare lawsuit, a massive blow to the Obama administration’s namesake legislation.

The Affordable Care Act (ACA, better known as Obamacare) requires medical providers to pay a Health Insurance Provider Fee (HIPF). Even though the ACA exempts states from paying that fee when providing health care, the U.S. Department of Health and Human Services (HHS) during the Obama era created a regulation requiring states to pay the fee anyway, a fee that is styled as a tax on the states.

Paxton sued in federal court, joined by Indiana, Nebraska, Kansas, and Louisiana. The five states’ lawsuit argues that this tax/fee is illegal under the Administrative Procedure Act (APA) because the ACA clearly exempts states from this payment and also that even if the statute did allow it, such taxes would violate the Tenth Amendment of the Constitution when imposed on sovereign states.

Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas agreed on the statutory issue (the APA claim), striking down the Obama HHS rule because it violates the plain language of the ACA law. O’Connor ordered the federal government to pay Texas the $305 million that the Lone Star State had paid in HIPF fees, as well as the fees of the other states, for a total of $839 million.

“Obamacare is unconstitutional, plain and simple,” Paxton said after Thursday’s ruling. “We all know that the feds cannot tax the states, and we’re proud to return this illegally collected money to the people of Texas.”

Having struck down the HIPF tax on statutory grounds, the court did not even need to reach the constitutional claim. Under the doctrine of constitutional avoidance, federal courts are supposed to issue constitutional rulings only if there is no lesser law upon which to grant plaintiffs the relief they seek. There is no reason to doubt that the states would have won on their constitutional argument if necessary, however, because the federal government cannot tax states under the Tenth Amendment’s intergovernmental tax immunity doctrine.

Surprisingly, it appears that Texas media are ignoring this monumental win for the Lone Star State and the other states also. There has been scant national coverage, as well.

Read full article here…

Related Post

Visit our Classified ads.

Check out our Classified ads at the bottom of this page.

Recent stories & commentary

Politics

Paris: Was the Notre Dame Cathedral Fire an Accident?

April 16, 2019 Stefan Molyneux 2

Stefan Molyneux questions the official story that the fire was accidental and presents reasons for suspecting it is part of the series of recent attacks against Catholic churches that have been blamed on ISIS. There were a dozen incidents of arson or serious vandalism against churches in just one week last month.

Classifieds

For classified advertising rates and terms, click here. The appearance of ads on this site does not signify endorsement by the publisher. We do not attempt to verify the accuracy of statements made therein or vouch for the integrity of advertisers. However, we will investigate complaints from readers and remove any message we find to be misleading or that promotes anything fraudulent, illegal, or unethical.

For Sale

Offline is a documentary on the inevitability of the Earth being slammed by a mega solar flare – not the common type that interrupts communications and creates a light show in the Northern skies – but the big brothers thousands of times more powerful. These monsters deliver enough energy to blow apart the master transformers that supply the planet’s energy grids. When that happens, the lights go out for longer than anyone wants to think about. These X-Class solar storms hit the Earth every 150 years, on average. The last one arrived 156 years ago. We are overdue (More)

 


Ten Days at Jekyll Island, a novel by Patrea Patrick, tells the true story of a secret meeting held in November of 1910 on a privately owned resort island, the outcome of which drastically changed the world. It was at this meeting that a banking cartel was forged; a cartel that, three years later, would be issued a government charter to do business as The United States Federal Reserve System. You will discover why secrecy was essential. Based on historical documentation from The Creature from Jekyll Island by G. Edward Griffin. (More)

 


Leave a Reply

avatar
  Subscribe  
Notify of