The Affordable Care Act, “ObamaCare”, is like a metastasized cancer with tentacles everywhere. It is on the way to killing the patient. The cure, if any is possible, is not an easy one as the Republicans in the House of Representatives have just learned.
What most do not know is that ex-President Barack Hussein Obama violated the Constitution in his attempt to prop up this catastrophic monster of Democrat legislation. In short, Obama robbed private investors in Fannie Mae and Freddy Mac, the two quasi-government corporations that back the mortgage industry. His administration concocted in 2012 a scheme to divert billions — that is BILLIONS — of dollars from Fannie and Freddy to pay essential Obamacare insurance subsidies that Congress had refused to fund. This diversion of funds was known as the “Net Worth Sweep” of 2012.
In Civil Action No. 14-1967 (RMC) in the United States District Court for the District of Columbia under then Judge Rosemary M Collyer, now on the FISA court, the United States House of Representatives as plaintiff filed against Sylvia M. Burwell, Secretary of the United States Department of Health and Human Services et.al.. The claim by the Congress was that the Secretaries of Health and Human Services and of the Treasury violated Article I, Section 9, cl. 7 of the Constitution when they spent public monies on ObamaCare that were not appropriated by Congress. This was money from the “Sweep” of Fannie and Freddy.
In 2008, when the economy went into recession over the collapse of the subprime mortgage market, Congress passed the Housing and Economic Recovery Act, HERA, to save Fannie and Freddie by a federal bailout that placed the two Government Sponsored Entities, GSEs, into government conservatorship. The US Treasury recapitalized Fannie and Freddy by issuing to the GSEs $187.5 billion in senior preferred stock with a 10% dividend designed to repay the U.S. Treasury over time. Recovered funds from Fannie and Freddie were to go toward repaying the United States of America Treasury. They were not authorized to be used in ways to be determined by ex-President Barack Hussein Obama.
The court agreed. In a ruling dated May 12th, 2016, the court granted summary judgment to the House of Representatives and enjoined any further reimbursements until a valid appropriation is in place.
The dispute involved two sections of the Affordable Care Act, Obama Care: Sections 1401 and 1402. Section 1401 provides tax credits to make insurance premiums more affordable. This was funded by Congress. Section 1402 reduces deductibles, co-pays, and other means of “cost sharing” by insurers. This was not funded by Congress. This was Judge Collyer’s conclusion and the basis of her order. She concluded the statutory language was clear. No funds not properly appropriated by Congress were to fund reimbursements due to insurers. Obama had done so in violation of law.
Under the Constitution, Congress passes all federal laws in this country. The powers vested in Congress include sole authority to adopt laws that authorize the expenditure of public monies and laws that appropriate those monies. Apparently, the Constitutional lawyer that ex-President Barack Hussein Obama claimed to be cannot read.