Judge sides with House Republicans against health care law

WASHINGTON – In a setback for the Obama health care law, a federal judge ruled Thursday that the administration is unconstitutionally subsidizing medical bills for millions of people while ignoring congressional power over government spending.

The ruling from U.S. District Judge Rosemary Collyer was a win for House Republicans who brought the legal challenge in an effort to undermine the law.

If the decision is upheld, it could roil the health care law’s insurance markets.

Collyer said her ruling would be put on hold while it is appealed.

At issue is the $175 billion the government is paying to reimburse health insurers over a decade to reduce deductibles and co-payments for lower-income people.

The House argues that Congress never specifically appropriated that money and has denied an administration request for it. Collyer agreed the administration is exceeding its constitutional authority by spending the money anyway. She rejected the administration’s argument that the law authorizes the money automatically because the program is considered an “entitlement” like Social Security.

House Republicans launched the lawsuit in 2014 over Democrats’ objections.

House Speaker Paul Ryan called the decision “an historic win for the Constitution and the American people.”

White House spokesman Josh Earnest said House Republicans ultimately would lose the case.

“This suit represents the first time in our nation’s history that Congress has been permitted to sue the executive branch over a disagreement about how to interpret a statute,” Earnest said.

Republicans “have been losing this fight for six years,” Earnest added. “And they’ll lose it again.”

The administration is expected to appeal Thursday’s ruling to the U.S. Court of Appeals for the District of Columbia Circuit, where a majority of active judges have been appointed by Democrats.