SMOKING GUN: OBAMACARE SUBSIDIES FOR STATES WITHOUT EXCHANGES INVENTED 2 YEARS AFTER LAW PASSED[...]
In his white paper, Vorse writes: "[T]he Obama administration and the Department of Health and Human Services required states establishing their own exchange to build a tax credit calculator. However," he continued, "for two years after passage of the law, they did not require the same for the federal exchange. These actions provide additional support that the Obama administration and HHS understood that only states that established their own exchanges were entitled to tax credits—the exact opposite of what they have been arguing in federal court."
Vorse presents a compelling case that after the President signed the Patient Protection and Affordable Care Act (Obamacare) on March 23, 2010 "the IRS initially began developing a rule to make tax credits available only on exchanges established by a state. As the findings outlined below show, HHS had a similar understanding of the law."
Significantly "in order for an exchange website to offer tax credits, it must have a tax credit calculator that allows individuals to view the actual cost of their coverage after tax credits have been applied to their premiums." Vorse notes that "official documents show that while HHS moved quickly after [Obamacare's] enactment to help state governments make tax credits available through state-based exchanges, for nearly two years, it developed its HealthCare.gov website without any effort to offer tax credits on the federal exchange."
The timeline of events highlighted in Vorse's report begins in March 2010 and ends in May 2012:
March 23, 2010 – President Obama signs the Patient Protection and Affordable Care Act (Obamacare) into law.
January 20, 2011 – "Nearly three months after issuing its first guidance document, HHS releases the Cooperative Agreement to Support Establishment of State-Operated Health Insurance Exchanges, the governing agreement for establishing “state-operated” health insurance exchanges. That document provides significant insight into HHS’ views at the time. This agreement specifies 'state-based' or 'state-operated' exchanges 17 times. The terms 'federally facilitated exchange' and 'federal exchange' are never used."
February 16, 2011 – "HHS awards millions to states to develop key technology and collaborate with other states but keeps HealthCare.gov out of the picture."
Prior to Early March 2011 – "Early drafts of tax credit regulations specify tax credits are only for state established exchanges. After a months-long investigation into the development of the IRS’s tax credit rule, a Joint Staff Report to the U.S. House of Representatives published on February 5, 2014, concludes: 'Early drafts of the proposed premium subsidy regulation contained the statutory language restricting tax credits to Exchanges established by the State.' This language was removed from those drafts in early March 2011."
March 16, 2011 – "HHS creates an online system for states to share technology with other states but not with HealthCare.gov."
March 23, 2011 – "Louisiana announces that it will not set up a health insurance exchange."
July 15, 2011 – HHS issues a request for comments that suggests it has not started developing a tax credit calculator. HHS releases draft rules for health insurance exchanges and qualified health plans, and requests comments on whether a model tax credit calculator would be helpful for the states. This request suggests HHS has not yet started developing a tax credit calculator.
September 30, 2011 – "HHS signs a contract with CGI Federal to develop HealthCare.gov with a revised Statement of Work. The contract does not mention a tax credit calculator and includes only five references to tax credits. All of these references are unrelated to HealthCare.gov providing tax credits."
January 11, 2012 – "Seven states [Kentucky, Maine, New Mexico, North Dakota, Tennessee, Utah, and Virginia] request written opinion from Attorney General on federal exchange tax credits so they can make a decision" about whether or not to establish their own health care exchanges.
January 18, 2012 – Obamacare architect Jonathan Gruber says "if you're a state and you don't set up an exchange that means your citizens don't get their tax credits."
March 27, 2012 – "The IRS distributes Final rules/Interim final rules. One noteworthy comment in the filing is that the IRS took 'recommendations into account' for HealthCare.gov as a model tax calculator. By this time, HHS has been granting money and requiring states to develop tax credit calculators for 18 months, yet still the federal government is only considering building a model tax calculator."
May 3, 2012 - "HHS revises the CGI contract Statement of Work. The revised statement of work has three significant modifications:
1) A tax credit calculator is now required on HealthCare.gov (there are seven references to a tax credit calculator in the modified statement of work compared to none in the original);
2) HHS will from this point forward collaborate with states; and
3) CGI is now required to go on 10 to 12 state visits to share technology.
In short, more than two years after the law passed, HHS has finally decided it must start developing a tax credit calculator for HealthCare.gov."
May 16, 2012 – "HHS finally distributes HealthCare.gov guidance. The guidance says that states operated as part of HealthCare.gov are entitled to premium tax credits."
May 23, 2012 - The IRS issues a rule that interprets Section 36B of Obamacare as meaning subsidies should be made available to residents of states that do not have their own healthcare exchanges.
When the Supreme Court rules on King v. Burwell in June of 2015 it will add what may be the most important entry to this timeline, one that could well mark the death knell for Obamacare.
http://www.breitbart.com/Big-Government/2014/11/20/Smoking-Gun-Obamacare-Subsidies-For-States-Without-Exchanges-Invented-By-Admin-2-Years-After-Law-Passed