Politics

Supreme Court Upholds Nationwide Health Care Law Subsidies

Published

10 years ago

June 25, 2015

Supporters of the Affordable Care Act hold up signs as the opinion for health care is reported outside of the Supreme Court in Washington, Thursday June 25, 2015. (AP Photo/Jacquelyn Martin)

MARK SHERMAN, Associated Press

WASHINGTON (AP) — The Supreme Court on Thursday upheld the nationwide tax subsidies underpinning President Barack Obama’s health care overhaul, rejecting a major challenge to the landmark law in a ruling that preserves health insurance for millions of Americans.

The justices said in a 6-3 ruling that the subsidies that 8.7 million people currently receive to make insurance affordable do not depend on where they live, as opponents contended.

The outcome was the second major victory for Obama in politically charged Supreme Court tests of his most significant domestic achievement. And it came the same day the court gave him an unexpected victory by preserving a key tool the administration uses to fight housing bias.

Chief Justice John Roberts again voted with his liberal colleagues in support of the health care law. Roberts also was the key vote to uphold it in 2012. Justice Anthony Kennedy, a dissenter in 2012, was part of the majority on Thursday.

“Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them,” Roberts declared in the majority opinion.

Limiting the subsidies only to individuals in states with their own exchanges could well push insurance markets in the other states “into a death spiral,” Roberts wrote.

Justice Antonin Scalia, in a dissent he summarized from the bench, strongly disagreed. “We should start calling this law SCOTUScare,” he said, using an acronym for the Supreme Court and suggesting his colleagues’ ownership by virtue of their twice stepping in to save the law from what he considered worthy challenges.

His comment drew a smile from Roberts, his seatmate and the object of Scala’s ire.

Scalia said that Roberts’ 2012 decision that upheld the law and his opinion on Thursday “will publish forever the discouraging truth that the Supreme Court of the United States favors some laws over others, and is prepared to do whatever it takes to uphold and assist its favorites.”

Justices Samuel Alito and Clarence Thomas joined the dissent, as they did in 2012.

Nationally, 10.2 million people have signed up for health insurance under the Obama health overhaul. That includes the 8.7 million people who are receiving an average subsidy of $272 a month to help pay their insurance premiums.

Of those receiving subsidies, 6.4 million were at risk of losing that aid because they live in states that did not set up their own health insurance exchanges.

The health insurance industry breathed a big sigh of relief, and a national organization representing state regulators from both political parties said the court’s decision will mean stable markets for consumers.

“This decision allows (state officials) to move forward with a level of confidence that their markets will not see significant disruption due to a paradigm shift,” said Ben Nelson, CEO of the National Association of Insurance Commissioners and a former Democratic senator from Nebraska.

Shares of publicly traded hospital operators including HCA Holdings Inc. and Tenet Healthcare Corp. soared after the ruling relieved those companies of the prospect of having to deal with an influx of uninsured people. Investors had worried that many patients would drop their coverage if they no longer had tax credits to help pay.

Republicans said the ruling would not mean the end of the political fight over the law, widely dubbed “Obamacare.”

Sen. Lindsey Graham of South Carolina, a Republican presidential contender, said that for 2016 candidates for Congress or the White House health care will be the “most dominant issue in the country.”

And Senate Majority Leader Mitch McConnell said Democrats who support the law “now have a choice: crow about Obamacare’s latest wobble toward the edge, or work with us to address the ongoing negative impact of a 2,000-page law that continues to make life miserable for too many of the same people it purported to help.”

The challenge devised by die-hard opponents of the law relied on four words — “established by the state” — in the more than 900-page law.

The law’s opponents argued that the vast majority of people who now get help paying for their insurance premiums are ineligible for their federal tax credits. That is because roughly three dozen states opted against creating their own health insurance marketplaces, or exchanges, and instead rely on the federal healthcare.gov to help people find coverage if they don’t get insurance through their jobs or the government.

In the challengers’ view, the phrase “established by the state” demonstrated that subsidies were to be available only to people in states that set up their own exchanges.

The administration, congressional Democrats and 22 states responded that it would make no sense to construct the law the way its opponents suggested. The idea behind the law’s structure was to decrease the number of uninsured. The law prevents insurers from denying coverage because of “pre-existing” health conditions. It requires almost everyone to be insured and provides financial help to consumers who otherwise would spend too much of their paycheck on their premiums.

The point of the last piece, the subsidies, is to keep enough people in the pool of insured to avoid triggering a disastrous decline in enrollment, a growing proportion of less healthy people and premium increases by insurers.

Several portions of the law indicate that consumers can claim tax credits no matter where they live. No member of Congress said that subsidies would be limited, and several states said in a separate brief to the court that they had no inkling they had to set up their own exchange for their residents to get tax credits.

The 2012 case took place in the midst of Obama’s re-election campaign, when Obama touted the largest expansion of the social safety net since the advent of Medicare nearly a half-century earlier. But at the time, the benefits of the Affordable Care Act were mostly in the future. Many of its provisions had yet to take effect.

In 2015, the landscape has changed, although the partisan and ideological divisions remain for a law that passed Congress in 2010 with no Republican votes.

The case is King v. Burwell, 14-114.

___

Associated Press writers Ricardo Alonso-Zaldivar, Connie Cass and Jessica Gresko in Washington and Business Writer Tom Murphy in Indianapolis contributed to this report.

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Alameda County

Last City Council Meeting of the Year Ends on Sour Note with Big Budget Cuts

In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.

Published

2 days ago

December 24, 2024

Oakland Post

Oakland City Council voted on a plan to balance the $130 million deficit at their last regular meeting of 2024. The plan reduces police spending by $25 million, temporarily closes two fire stations, and guts the cultural arts programs. iStock photo.

By Magaly Muñoz

In the last lengthy Tuesday meeting of the Oakland City Council for 2024, residents expressed strong opposition to the much needed budget cuts before a change in leadership was finalized with the certification of election results.

Oakland police and fire departments, the ambassador program, and city arts and culture will all see significant cuts over the course of two phases.

Phase 1 will eliminate two police academies, brown out two fire stations, eliminate the ambassador program, and reduce police overtime by nearly $25 million. These, with several other cuts across departments, aim to save the city $60 million. In addition, the council simultaneously approved to transfer restricted funds into its general purpose fund, amounting to over $40 million.

Phase 2 includes additional fire station brownouts and the elimination of 91 jobs, aiming to recover almost $16 million in order to balance the rest of the budget.

Several organizations and residents spoke out at the meeting in hopes of swaying the council to not make cuts to their programs.

East Oakland Senior Center volunteers and members, and homeless advocates, filled the plaza just outside of City Hall with rallies to show their disapproval of the new budget plan. Senior residents told the council to “remember that you’ll get old too” and that disturbing their resources will only bring problems for an already struggling community.

While city staff announced that there would not be complete cuts to senior center facilities, there would be significant reductions to staff and possibly inter-program services down the line.

Exiting council member and interim mayor Bas told the public that she is still hopeful that the one-time $125 million Coliseum sale deal will proceed in the near future so that the city would not have to continue with drastic cuts. The deal was intended to save the city for fiscal year 2024-25, but a hold up at the county level has paused any progress and therefore millions of dollars in funds Oakland desperately needs.

The Coliseum sale has been a contentious one. Residents and city leaders were originally against using the deal as a way to balance the budget, citing doubts about the sellers, the African American Sports and Entertainment Group’s (AASEG), ability to complete the deal. Council members Reid, Ramachandran, and Gallo have called several emergency meetings to understand where the first installments of the sale are, with little to no answers.

Bas added that as the new Alameda County Supervisor for D5, a position she starts in a few weeks, she will do everything in her power to push the Coliseum sale along.

The city is also considering a sales tax measure to put on the special election ballot on April 15, 2025, which will also serve as an election to fill the now vacant D2 and mayor positions. The tax increase would raise approximately $29 million annually for Oakland, allowing the city to gain much-needed revenue for the next two-year budget.

The council will discuss the possible sales tax measure on January 9.

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Activism

Protesters Gather in Oakland, Other City Halls, to Halt Encampment Sweeps

The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.

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2 days ago

December 24, 2024

Oakland Post

The California Poor People’s Campaign’s Victoria King erected encampments for unhoused Oaklanders. Victoria King and her committee erected these emergency tents to symbolize the needs of unhoused Oaklanders. Photos by Post Staff.

By Post Staff

Houseless rights advocates gathered in Oakland, San Francisco, Los Angeles, and other city halls across California and Washington state this week protesting increased sweeps that followed a U.S. Supreme Court decision over the summer.

“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” said rights advocate Junebug Kealoh, outside San Francisco City Hall.

“When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything,” said Kealoh.

Local houseless advocates include Victoria King, who is a member of the coordinating committee of the California Poor People’s Campaign. She and Dr. Monica Cross co-chair the Laney Poor People’s Campaign.

The demonstrations came after a June Supreme Court ruling expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. Gov. Gavin Newsom in California followed up with an order directing state agencies to crack down on encampments and urging local governments to do the same.

Fresno, Berkeley and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as San Francisco, officials more aggressively enforced anti-camping laws already on the books.

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Celebrating East Bay Leaders Keith Carson and Federal Glover at Geoffrey’s Inner Circle

Several leaders were in attendance including fellow Alameda Supervisors Elisa Marquez and Lena Tam, Superior Court judge-elect Terry Wiley, and African American Sports and Entertainment Group’s founder Ray Bobbitt, along with many other guests.

Published

2 days ago

December 24, 2024

Oakland Post

Keith Carson, John Gioia, Federal Glover, Nate Miley Left to Right.

By Magaly Muñoz

After decades of public service in the East Bay, community members and leaders came together to celebrate Alameda County Supervisor Keith Carson and Contra Costa Supervisor Federal Glover at Geoffrey’s Inner Circle Thursday afternoon.

First elected in 1992, Carson has served District 5 for 24 years and announced his decision to step away from his seat earlier this year, just before the deadline to submit new candidate applications.

He dedicated his long career to bringing access to health care, addressing homelessness, lowering crime, improving business retention, and growing job opportunities in Alameda County.

Glover began his tenure as Contra Costa Supervisor in 2000 and previously served as mayor of Pittsburg in 1998. During his time as Supervisor, he supported initiatives on public transportation, created committees for public safety, and supported task forces on health.

“These two distinguished leaders have dedicated their lives to improving the lives of so many people across Alameda and Contra Costa (counties). Their work has touched every corner of the East Bay,” Alameda County Supervisor and President Nate Miley said.

Leaders from both counties spoke on the supervisors’ legacies and their dedicated years of service.

Contra Costa Supervisor John Gioia said that Glover was the type of person that grew with each challenge that crossed him, especially after he had major surgery in 2020. But Gioia said that the treatment did not deter Glover.

“He’s had tougher races for reelection than any member of our board that I can recall, and he’s always come back stronger than before,” Gioia said.

Sharing a county border, Gioia complimented Carson on his ability to sway leaders from both sides of the political aisle to listen on the issues affecting locals and residents across the nation.

Shannell Scales Preston, who is taking over Glover’s D5 seat in 2025, told event attendees that Glover was a mentor to her for many years. He often would call Preston after Pittsburg City Council meetings with remarks about her performance and how well she spoke up on certain issues.

With Glover spending years as the only Black elected official in local government, Preston would ask him how he managed to not feel lonely about the job. She then congratulated him on being the only supervisor in Contra Costa to have all Black mayors under his district in 2023.

Preston said he’s been a leader to many diverse groups and his tenure has seen leaders of all backgrounds, but particularly paving the way for Black leaders in predominantly white areas.

Miley, who has shared his entire 24-year tenure on the Alameda Board with Carson, tearfully wished the exiting supervisor luck and said he would miss him dearly.

Carson said that as we embark on a “dark time” for everyone across the nation and worldwide in 2025, it’s important to continue communicating and working with groups from all backgrounds because that is the only way things will get done.

“There have been many lonely nights, but then the sun comes out in the morning when you continue to think, ‘I can make a difference,’” Carson said.