We teased the premise of the Obamacare subsides lawsuits back in October on our U.S. Supreme Court blog, but since then, one of the cases has proceeded all the way through oral arguments at the D.C. Circuit.
Last week, while the Supreme Court was hearing oral arguments in the contraception mandate lawsuit, the D.C. Circuit was hearing its own oral arguments in Halbig v. Sebelius (the subsidy dispute), with two of the three judges appearing to be inclined to side against the IRS and Obamacare.
Should the subsidies collapse, not only would that kill demand for insurance on the exchanges, but it would also wipe out the employer mandate, which is triggered by at least one employee receiving a subsidy on the marketplace.