Republicans Challenge Obamacare Subsidies

GOP investigators are questioning the legality of the Obama administration's extension of subsidies for state-based health insurance exchanges run by the federal government under the Affordable Care Act.

Rep. James Lankford of Oklahoma, chairman of a health subcommittee of the Committee on Oversight and Government Reform, said on Wednesday that the funds are intended only for exchanges set up by the states, reports The Washington Times.

House Oversight Chairman Rep. Darrell Issa, R-Calif., a staunch critic of Obamacare, has argued that the administration did not plan for more than half of the states defaulting to a federally-run exchange, where consumers can buy private coverage with the help of tax credits paid in advance.

The Treasury, however, says it interpreted the law in regard to its overall purpose, and deputy assistant Treasury secretary for tax policy, Emily McMahon, is due to present the administration's view to the House panel on Wednesday.

Meanwhile, conservative groups ranging from Heritage Action, the Club for Growth and FreedomWorks are reportedly among dozens of signatories to a letter addressed to House Speaker John Boehner, R-Ohio, and Majority Leader Eric Cantor, R-Va., pushing to defund Obamacare under a larger federal budget bill to be debated in the fall.