Should the Supreme Court rule against the government in the Obamacare challenge being heard Wednesday, "there will be winners in 37 states," according to Twila Brase, the president and co-founder of Citizens’ Council for Health Freedom.
"At issue is the fact that the government is providing Obamacare subsidies through HealthCare.gov in 37 states that do not have a state-based exchange," she explained during an appearance on "America’s Forum" on
Newsmax TV on Wednesday.
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"However, the law says that the subsidies can only be issued through a state-based exchange and there's only 13 of those, plus Washington, D.C. The people in 37 states and the employers in 37 states will be free from the mandates and the penalties, because they only kick in if there are subsidies available."
Subsidies will be eliminated in those states should the court rule in favor of the plaintiffs, she said, resulting in "freedom from Obamacare, at least from the mandates and the penalties in those 37 states."
The issue of the intent of the law
— which says that people qualify for tax credits when purchasing insurance on an online marketplace "established by the state"
— is being challenged.
"[The Obama administration] is trying to argue that the Congress had a different intent and that would be very concerning if the Supreme Court rules that we look at intent rather than a straight reading of the law," Brase said. "As soon as the leadership of Congress or the president in some future situation decided that we don't like how the law reads, we're going to base what we do on what we call intent. Then we lose the complete rule of law in this country. That would be a very bad decision."
The plaintiffs in the lawsuit argue that the phrase "established by the state" means subsidies are not available in states that declined to set up their own exchanges. There are 7.5 million residents in those states who receive subsidies on the federal HealthCare.gov system.
While it will be painful for those people who might lose their subsidies, Brase said "there will be less pain for the taxpayers who don't have to pay them."
"We have to look at the long run, which is the picture that we have to get back to health freedom. The only way to get back to health freedom is not to expand Obamacare.
"If Congress decided to actually keep those subsidies running, they will have expanded Obamacare above and beyond what Obamacare is as a current state and law," Brase said.
"We don't want Republicans to decide to help Obama expand Obamacare. We want to move in the other direction, which is back to freedom, and we don't want to have all these people in the 37 states taxed."