Attorney General Scott Pruitt: "We're optimistic the court will recognize ... that the IRS disregarded the law."
A federal judge ruled Monday that Oklahoma has standing to sue the federal government over the Affordable Care Act.
U.S. District Judge Ronald White's ruling in the Eastern District of Oklahoma denied the federal government's motion to dismiss the state's lawsuit challenging the law known as "Obamacare."
White allowed three counts in the lawsuit to proceed and dismissed two other counts.
Attorney General Scott Pruitt said the judge's ruling was a first-stage victory in the state's battle against the law.
"The court rejected the federal government's argument that Oklahoma lacked standing to challenge the law, allowing us to proceed with this pivotal case," he said.
"We're optimistic the court will recognize what states have known for months - that the IRS disregarded the law by making the large-employer mandate effective in Oklahoma or in any of the 33 other states without a state health-care exchange."
Oklahoma's original lawsuit was filed in January 2011. Last September, following a U.S. Supreme Court decision upholding the Affordable Care Act, Pruitt filed an amended complaint to raise issues related to the law's implementation.
The central claim in the state's suit is a difference between the wording in the law itself and the wording in a rule the IRS developed to implement it.
The law requires individuals to purchase insurance unless they fall into an exempt category and makes tax credits available for those who qualify. The exchanges are websites where consumers can compare rates and features of insurance plans.
The law says the credits would be available to people who purchase insurance through an exchange "established by the state." The IRS rule, however, includes exchanges created by the federal government.
Oklahoma is one of 19 states that refused to create an exchange and will instead have a federally created exchange. Other states are creating their own exchanges or are partnering with the federal government in creating exchanges.
"Congress provided a choice for Oklahoma and other states in implementation of the health-care law, and the IRS is attempting to take that away by rule," Pruitt said. "The administration miscalculated how many states would support this law, so now they're using the IRS to push through provisions that Congress did not pass."
Insurance exchanges are scheduled to open Oct. 1, offering consumers information about health insurance plans available under the new law.
Consumers can choose from four types of plans - bronze, silver, gold and platinum - that pay from 60 percent to 90 percent of health-care costs. The law does not affect people who already have insurance through their employers or Medicare.
Oklahoma has about 680,000 uninsured people, about 18 percent of the state's population.
Under the law, tax credits are available for individuals and families earning from 100 percent to 400 percent of the federal poverty level. Because Gov. Mary Fallin rejected an expansion of Medicaid that was part of the law, Oklahoma residents below the federal poverty level will not receive coverage under the law.
Ziva Branstetter 918-581-8306
ziva.branstetter@tulsaworld.com
Original Print Headline: State has right to sue over Obamacare, judge rules
