Could the lack of State exchanges bring Obamacare down?

 I do not know if this story is true, but if it is it could possibly signal the death of Obamacare. According to the story the healthcare law only gives the Federal government the authority to penalize people for not purchasing healthcare insurance if the state in which they reside has set up a state exchange.

According to the letter of the law, the government can only reward subsidies and levy penalties in states that have created Obamacare state exchanges

While the president’s health law is vast and extraordinarily complex, it is in one respect very simple,” Pruitt wrote in a Sunday Wall Street Journal op-ed. “Subsidies are only to be made available, and tax penalties for not signing up for health insurance are only to be assessed, in states that create their own health-care exchange.”

  To date only 16 states (and Washington DC) have set up their own exchanges, the other states are either using the Federal exchange or have a state-federal partnership exchange set up. This means that revenues would fall about $1 trillion short of projections.

“What that means is that’s almost a trillion dollars of funding for Obamacare that cannot come to be,” D.C. attorney Joe diGenova told WMAL radio Monday morning

 Without this money  it is hard to see how Obamacare can not implode under its own weight, so what has the Obama regime’s response been? They are ignoring the law (I know that is hard to believe!) and are trying to enforce the penalty on people who live in states which have not set up their own state exchange.

“Now, the administration has taken the position that, ‘Oh, I know that’s what the law says — that it has to be a state, but what it really means is the federal exchange too.’ 

  In a little reported story, the state of Oklahoma is suing the Federal government on these grounds and this story needs to be watched closely.

“This could be the single most important piece of litigation in all of this criticism of Obamacare, and it’s gone on almost completely unnoticed,” diGenova continued. “This is amazing.”

  It is not surprising that the Obama regime would be willing to ignore the law for they have shown in the past their utter disrespect for the law, but Obamacare’s future may hang in the balance of the courts. This is still a long shot, however, because if this case does make it to the Supreme Court the law could rest in the balance of the compromised Chief Justice John Roberts.