Cannon contends that Congress specifically meant to limit insurance subsidies to states that ran their own marketplaces. He notes that the part of the Affordable Care Act that authorizes the money says that the subsidies are available to people who enrolled “through an Exchange established by the State.”
Because the law is written that way, Cannon and the Supreme Court plaintiffs hold that subsidies are available only on state-based exchanges, not on the Healthcare.gov exchanges used by the majority of states.
The lawsuit is a genuine existential threat to Obamacare. If the Supreme Court rules for the plaintiffs, the law’s marketplaces would collapse in most states. I spoke with Cannon in mid-November about the case against Obamacare subsidies, how it began, and what it would mean for the Affordable Care Act if this lawsuit succeeded.