SMOKING GUN: Obamacare Subsidies Intended for State Exchanges Only

Obamacare architect caught in huge lie over exchange subsidies

From our friend Michael Dorstewitz over at

A senior Obamacare architect now claims that limiting subsidies for private health insurance under the act to only state-run exchanges was merely a “typo” in the bill — one that the IRS attempted to patch up with a rule change. However, a two-year old video clip depicts the same man claiming the exact opposite — states that hadn’t set up exchanges were purposely excluded.

The District of Columbia Circuit Court of Appeals ruled earlier this week that a clear reading of the Affordable Care Act indicates that subsidies for private health insurance were limited only to state-run health exchanges, according to Reason.

Shortly after the the D.C. Circuit Court made its ruling, senior Obamacare architect Jonathan Gruber appeared on MSNBC’s “Hardball” and told host Chris Matthews:

“Chris, it is unambiguous this is a typo. Literally every single person involved in the crafting of this law has said that it`s a typo, that they had no intention of excluding the federal states. And why would they? Look, the law says that people are only subject to the mandate if they can afford insurance, if it`s less than 8 percent of their income. If you get rid of these subsidies, 99 percent of the people who would get subsidies can no longer afford insurance, so you destroy the mandate. Why would Congress set up the mandate and go through all that political battle to allow it to be destroyed? It`s just simply a typo, and it`s really criminal that this has even made it as far as it has.”

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Here’s a clip of that exchange:

However, in January of 2012, Gruber told a gathering at Noblis Network, a nonprofit research corporation headquartered in Falls Church, VA., that the drafters purposely denied Obamacare subsidies to residents of states that hadn’t set up health care exchanges in order to get those states to toe the line.

“What’s important to remember politically about this is if you’re a state and you don’t set up an exchange, that means your citizens don’t get their tax credits” he told the gathering. “But your citizens still pay the taxes that support this bill. So you’re essentially saying to your citizens you’re going to pay all the taxes to help all the other states in the country.”

Here’s the pertinent part of his presentation:

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