Morris: Pruitt’s Lawsuit Could Cause ObamaCare To Crumble

Suit in Oklahoma could knock out ObamaCare

By Dick Morris – 10/08/13 06:31 PM ET

Why didn’t anyone else think of it?

Scott Pruitt, the attorney general of Oklahoma, acting on the research of Jonathan H. Adler and Michael F. Cannon published in the Case Western Reserve Journal of International Law, has brought a new lawsuit, on behalf of the state, against ObamaCare.

Unlike the suit brought by 26 state attorneys general, this lawsuit does not make a constitutional objection to the Affordable Care Act. Instead, it uses the language of the law to challenge the elaborate system of subsidies, tax credits and individual or employer mandates and fines the act has spawned.

Adler and Cannon studied the actual text of the law — something Congress never did — and found that it explicitly provided a subsidy only to those who receive their insurance through state exchanges. Indeed, the subsidies and tax credits were intended to be the carrot that induced states to set up exchanges rather than force the feds to set up their own.

The Internal Revenue Service has ruled that the language of the statute should be “interpreted” to extend the subsidies to those enrolled in state or federal exchanges, but that’s not what the law says. Section 1401 of the act, according to their article, “authorizes premium-assistance tax credits and makes them available only through state-run Exchanges.”

Read the complete story on thehill.com