DEVELOPING: Federal judges in New Orleans taking up the future of Obamacare on Tuesday, hearing from states that say it's unconstitutional, as well as from Justice Dept. lawyers directed by President Trump to oppose the entire law.
WASHINGTON — A panel of federal judges in New Orleans takes up the future of Obamacare on Tuesday, hearing from states that say it's unconstitutional and from Justice Department lawyers directed by President Donald Trump to oppose the entire law, too.
Republicans controlling Congress struck back in 2017, dropping the tax penalty to zero, prompting Texas and the other red states to sue. Federal District Court Judge Reed O'Connor ruled in their favor, concluding that because there no longer was a tax, the law could not be saved as a use of the taxing power.
The Justice Department at first said it agreed with only part of O'Connor's ruling. The judge should have left some parts of the law in effect, the government said initially, including provisions expanding Medicaid to cover millions of America's poorest, creating health insurance marketplaces, and providing subsidies for low- and moderate-income people.
Second, the appeals court must decide whether O'Connor was right that the entire law must be struck down or whether parts of it can still be salvaged. Leading the case for the opponents, Texas said Congress repeatedly said in passing Obamacare that the mandate was"essential" and that the rest of the law would collapse without it. The blue states and the House say if Congress meant for the entire law to be scrapped, it would have said so when it set the tax penalty at zero in 2017.
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