A few more thoughts on Gruber-gate:
1. It seems the exponents of the D.C. Circuit’s ruling on Obamacare subsidies have moved from the position that the ACA passively fails to authorize tax credits through federal exchanges to the idea that it actively prohibits them. That’s pretty astonishing.
2. A second clip featuring Gruber surfaced in which the MIT economist said the same thing he did in the first video. I don’t know what more to add to my reaction to the initial revelation. It seems to me that Gruber did not “misspeak” on either occasion; he believed residents of states that hadn’t set up exchanges would miss out on subsidies until such time as the federal exchanges came online. It’s plausible, too, that he was encouraging states to cooperate with the law in order to score consulting contracts. One could see why he’d be loath to admit this now.
3. There’s another meme that’s about to be set loose: that it took “guts” for Republicans not to set up Obamacare exchanges, that is, accept the bribe of federal money. It’s only a matter of time before a Republican governor says he interpreted Obamacare in this fashion all along. Perhaps one with presidential aspirations—say, Rick Perry. I’ll take bets on who it will be, and when.
Putting aside the fact that no one thought the states wouldn’t want to run the exchanges themselves (indeed, Senators were demanding that option for their states), the exchange provisions simply do not work in the same way as Medicaid. Unlike the ACA’s Medicaid provisions, the exchange provisions have a federal fallback: Medicaid is use it or lose it; the exchanges are do it, or the feds step in and do it for you. In other words, this isn’t Medicaid; it’s the Clean Air Act (CAA). If a state decides not to create its own implementation plan under the CAA, its citizens do not lose the benefit of the federal program—the feds run it. The same goes for the ACA’s exchanges and so it would be nonsensical to deprive citizens in federal-exchange states of the subsidies. More importantly, if we are going to compare apples to oranges, the ACA’s Medicaid provisions have an explicit provision stating that if the state declines to participate, it loses the program funds (this was the provision at issue in NFIB v. Sebelius in 2012). The ACA’s subsidy provisions, in contrast, have no such provision, strong evidence that the subsidies were was not intended to be forfeited if the states did not participate. If the challengers are going to insist on strict textual arguments, this is exclusio unius 101: the rule of interpretation that provides that where Congress includes a specific provision in one part of the statute but does not include an analogous provision elsewhere, that omission is assumed intentional.”
This wiki entry on the Clean Air Act seems apposite:
Although the 1990 Clean Air Act is a federal law covering the entire country, the states do much of the work to carry out the Act. The EPA has allowed the individual states to elect responsibility for compliance with and regulation of the CAA within their own borders in exchange for funding. For example, a state air pollution agency holds a hearing on a permit application by a power or chemical plant or fines a company for violating air pollution limits. However, election is not mandatory and in some cases states have chosen to not accept responsibility for enforcement of the act and force the EPA to assume those duties.
Again: I can’t believe this contest is even necessary. Sigh. Carry on.