United States House Of Representatives v. Burwell

130 F. Supp. 3d 53 (2015)

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Nature of the Case

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Facts

Congress enacted Obama care. Congress enacted a 'premium tax credit' for coverage of statutory beneficiaries with household incomes from 100% to 400% of the federal poverty level. This is called the Section 1401 Premium Tax Credit. Section 1402 requires insurers to reduce the cost of insurance to certain, eligible statutory beneficiaries. The federal government then offsets the added costs to insurance companies by reimbursing them with funds from the Treasury. This is called the Section 1402 Cost-Sharing Offset. The Section 1401 Premium Tax Credits are paid directly to insurance companies, who then 'reduce the premium charged the insured for any period by the amount of the advance payment.' Treasury pays Section 1402 Cost-Sharing Offsets to the insurers 'at such time and in such amount as the Secretary [of HHS] specifies.' P contends that Section 1401 Premium Tax Credits are funded by a permanent appropriation in the Internal Revenue Code. Section 1402 Cost-Sharing Offsets must be funded and re-funded by annual, current appropriations. P alleges that 'Congress has not, and never has, appropriated any funds (whether through temporary appropriations or permanent appropriations) to make any Section 1402 Offset Program payments to Insurers.' Obamacare provides incentives for employers to offer health insurance coverage to their employees. Section 1513 adds a new chapter to the Internal Revenue Code that subjects every non-conforming employer to an 'assessable payment,' i.e., a tax. It requires any 'applicable large employer' to 'offer its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan' or else to pay the tax. P alleges that it requires temporary appropriations to fund Section 1402. On October 17, 2013, the President signed into law the first of two continuing resolutions to keep the government running pending a consolidated appropriations act. Neither resolution included an appropriation for the Section 1402 Cost-Sharing Offset program. On January 17, 2014, the President signed the Consolidated Appropriations Act for 2014, which did not appropriate monies for the Section 1402 Cost-Sharing Offset program. P alleges that Ds, despite Congress's refusal to fund the Section 1402 Cost-Sharing Offsets through a current appropriation, nonetheless drew and spent public monies on that program beginning in January 2014. P filed suit. Ds moved to dismiss for lack of standing and that they were merely implementing Obamacare which they claim they have the authority to do.