The U.S. Supreme Court is set to hear a lawsuit challenging the Obama Administration鈥檚 implementation of the Affordable Care Act. Vanderbilt University legal expert says the true issue surrounding the King v. Burwell case is separation of powers.
鈥淭he court is being asked not to trump the political branches, which was the issue in the earlier constitutional challenge to the ACA鈥檚 individual mandate,鈥� says Blumstein. 鈥淭he court is also being asked to vindicate the right of Congress to determine whether the ACA, as drafted, got the policy right or not.鈥�
THE CASE
King v. Burwell challenges the IRS鈥檚 authority to extend tax subsidies to federally run health care exchanges. About three dozen states are using the federal government鈥檚 insurance exchange system through rather than setting up their own state exchanges.
Section 1311 of the ACA requires states to establish an exchange. But the federal government cannot force states to set up exchanges from a constitutional perspective.
In what Blumstein describes as an “oops” provision, section 1321 of the ACA provides that the federal government must set up an exchange in any state where the state has not established 鈥渟uch鈥� exchange.
OVERREACHING AUTHORITY
By allowing these states to receive tax subsidies from the IRS, Blumstein believes the Obama administration overreached its authority.
鈥淭he lower court ruled for the federal government, basically on the theory that the ACA intended to subsidize those income-qualified purchasers who buy insurance on all exchanges,鈥� explains Blumstein. 鈥淏ut the issue is not some abstract question of what Congress intended, but what Congress actually did. And about that there can be no serious dispute.鈥�
LEGISLATIVE GAPS
Blumstein believes that the power to fill legislative gaps belongs to Congress, the legislative branch, not the IRS through the executive branch.
鈥淭he Supreme Court should rein in the IRS by invalidating its regulation to the contrary.鈥�
Blumstein is University Professor of Constitutional Law and Health law and policy and professor of management.