Oklahoma Attorney General Scott Pruitt has filed a lawsuit against the Patient Protection and Affordable Care Act, arguing that employers should not be penalized if they don't offer affordable health plans to their employees, according to a Wall Street Journal report.
Previously, Oklahoma and 25 other states argued the PPACA was unconstitutional on the grounds that the government cannot force individuals to buy health insurance or pay a penalty. In June, the Supreme Court ruled against their argument and upheld the law's constitutionality.
The new lawsuit centers on employer penalties and the health insurance exchanges. The exchanges, which will go live in 2014, allow people to buy and compare health plans and apply for federal subsidies to pay for the cost of premiums. The PPACA also says that if employers don't offer affordable health coverage, even for employees receive a federal subsidy, then employers will be hit with a penalty, according to the report.
Oklahoma is one of many states that do not plan to implement an exchange. HHS will step in and design the exchange if a state doesn't do so. However, Oklahoma is arguing the wording of the law says only "state-run" exchanges could be subject to penalties. If Oklahoma does not implement its exchange, it would be a federal-run exchange.
President Barack Obama's administration has said the rules will apply to state- or federal-run exchanges, and many believe Oklahoma's new lawsuit "faces long odds" of succeeding, according to the report.
Previously, Oklahoma and 25 other states argued the PPACA was unconstitutional on the grounds that the government cannot force individuals to buy health insurance or pay a penalty. In June, the Supreme Court ruled against their argument and upheld the law's constitutionality.
The new lawsuit centers on employer penalties and the health insurance exchanges. The exchanges, which will go live in 2014, allow people to buy and compare health plans and apply for federal subsidies to pay for the cost of premiums. The PPACA also says that if employers don't offer affordable health coverage, even for employees receive a federal subsidy, then employers will be hit with a penalty, according to the report.
Oklahoma is one of many states that do not plan to implement an exchange. HHS will step in and design the exchange if a state doesn't do so. However, Oklahoma is arguing the wording of the law says only "state-run" exchanges could be subject to penalties. If Oklahoma does not implement its exchange, it would be a federal-run exchange.
President Barack Obama's administration has said the rules will apply to state- or federal-run exchanges, and many believe Oklahoma's new lawsuit "faces long odds" of succeeding, according to the report.
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