President Barack Obama's signature health-care law was dealt another blow as a federal judge ruled two of its key provisions violate the Constitution by spending money that hasn't been appropriated by Congress.

The ruling Thursday by U.S. District Judge Rosemary Collyer in Washington was a victory for the Republican-led House of Representatives, which claimed the law illegally directs public money to tax credits that make insurance premiums more affordable, and to reductions in deductibles and other “cost sharing” methods used by insurers. Collyer put her ruling on hold pending an appeal.

The legislators said the disbursements will total $175 billion over a decade and weren't approved by Congress.

The White House's Office of Management and Budget and Department of Health and Human Services Secretary Sylvia Mathews Burwell were wrongfully spending money before Congress had approved it, the judge said. She called their defense in the case “unpersuasive.”

“The secretaries ignore their own actions and focus instead on congressional inaction,” Collyer said. “It strains credulity to suggest that OMB or HHS submitted a multibillion-dollar budget request without analyzing the relevant statutes.”

Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.