The law also allows people to completely opt out of the mandate to buy insurance if the cost is more than 8% of their income. Hence, in 34 states, most people can opt out because they won't get the subsidy.
It appears that Obama plans to circumvent his own law and provide the subsidies anyway. The State of Oklahoma is suing the feds to prevent this illegal maneuver.
However, 34 states have decided not to play the ObamaCare game and opted for a federally created exchange or the partnership, which means the federal subsidies will not be available to millions of middle- and lower-income workers in those states.
And without the subsidies, insurance would become “unaffordable” under ObamaCare for the vast majority of those families. They would thus be exempted from the mandate to have coverage, and their employers would be exempted from the penalty for not providing it.
In other words, the most draconian part of ObamaCare would essentially be defunded. Bingo!
Oklahoma is suing the feds to establish this point.
More states should be joining this lawsuit.