WASHINGTON (AP) — In a setback for the Obama health care law, a federal judge ruled Thursday that the administration is unconstitutionally subsidizing medical bills for millions of people while ignoring congressional power over government spending.
At issue is the $175 billion the government is paying to reimburse health insurers over a decade to reduce deductibles and co-payments for lower-income people.
The GOP-led House had already voted dozens of times to repeal all or parts of "Obamacare," but those efforts went nowhere, failing to overcome opposition from Senate Democrats and the president.
Republican House leaders asserted that the Obama administration couldn't spend money that lawmakers refused to provide.
"The court ruled that the administration overreached by spending taxpayer money without approval from the people's representatives," he said in a statement.
The disputed subsidies help lower-earning customers afford out-of-pocket costs, such as annual insurance deductibles and co-payments when they seek medical care.
Under the law, insurers have to provide cost-sharing assistance to consumers picking a silver plan who make up to two-and-a-half times the federal poverty level, which is $60,750 for a family of four.
