That's not how the law works. The rest of the statute clearly speaks of how Federal subsidies should be reported, which means that the framers of the law clearly intended there to be Federal and state exchanges. They set up how that would work so that states could opt to let the feds handle the exchange for them, or set up their own if they wanted more control over the process. What the DC court said was that the clear intent of the framers doesn't matter if there's an ambiguous or erroneous passage, even if it conflicts with other parts of the same law. In the past, courts have always sided with the lawmakers and agencies who interpret the laws, because if they didn't then almost every law could be picked apart for language like this. It's the DC court (well, two wingnut activist judges, anyway) who went rogue.
No,
this isn't right. What they said was that it wasn't ambiguous.
Here is a well-written explanation by a distinguished lawyer. I'm not a lawyer, but I've had a lot of experience with litigation over bond indentures and the like. Going to court is always a crapshoot. Judges will do what they will do (which is to say, make random and inconsistent rulings). But in my experience there are only two situations where the plain letter of the statute will be reinterpreted: (1) a scrivener's error (i.e. a typo); and (2) a truly ambiguous provision, which means that reasonable people, who are familiar with the lingo and common practices assumed by the drafters, may reach materially different interpretations. I don't see either one in this case. If this was a private financial contract, I would definitely want the plantiffs' side of this case. The plain text is quite clear. Before a judge should even look to other elements of the contract to help resolve an ambiguity, he must first determine that there is an ambiguity. There simply isn't one in the provision providing for subsidies, even when read in concert with the rest of the statute. You can't create an ambiguity by showing that other provisions appear to assume a different meaning. You would need an outright contradiction to do that.
That being said, I think most judges will rule according to their hearts and not their brains when it comes to a decision which would completely upend the status quo. I expect the DC Circuit
en banc appeal will overturn the ruling of the panel and side with the government because the full court was recently packed with liberals by Obama and Reid (that was the main reason for changing the filibuster rules), and the Supreme Court either will let the ruling stand or will rule 5-4 in favor of the government (with Roberts being the swing vote).
And by the way, that stupid talking point about passing the law in the "dead of night" and "passing the law to find out what's in it"? The law was online for anyone to read it for a year. If you didn't know what was in it, it's because you spent too much time reading chain emails or watching Fox News to bother educating yourself.
I don't know how the law could have been online for an entire year before being passed, since the Senate version, which was passed by the House in March 2010, was still being negotiated in December 2009. Also, reconciliation was used to make many changes in March 2010. So the law was still in flux right up to the point that it was passed.
By the way, another
legal challenge is coming because the Senate screwed up the usual trick for satisfying the
Origination Clause when they created and passed the Obamacare bill.