From NetRight Daily:
How federal exchanges could kill Obamacare
Even if Healthcare.gov is fixed, the federal exchanges available on it may yet prove to be the law’s Achilles heel.
The U.S. District Court for the District of Columbia is allowing a case to move forward that could gut Obamacare insurance subsidies in 34 states that opted not to implement state-run exchanges.
If the plaintiffs prevail, the American people will be able to thank those governors that fought hard in the past year to opt out of Obamacare. Because of their decision, under the law, the government has to create a federal exchange in lieu of the state-run exchange.
But, the problem is the law never allowed those federal exchanges to issue subsidies for insurance policies. Only state-run exchanges were given that privilege.
The fallout from this effort, if successful (and if the courts follow the law, it will be, but we know that can’t be predicted), could force states to set up their own exchanges or force their citizens to lose billions in subsidies. Or, better yet, it could cause the states to say, “We’re going to set up our own system completely independent of federal oversight.”