The more I think about this health tax issues as it applies to the States, the more I lean to the opinion that the credit was of no consequence to the States either way. Think about it...
Many States worried about the financial burden establishing a HIE would have on their economy both in the initial set-up and the subsequent maintenance. Remember: Each HIE had to be self-sustaining with a 1-2 years. The health tax credit would NEVER have come from the State's cauffers:
1) Because they'd only be in affect for 1-year; and,
2) The funds would come from the federal government.
So, it makes sense that States never worried about the credit at all. It wasn't ever going to be money that would go into their budgets long-term anyway. They'd just pay it out to those applicants who were eligible to receive it. So, when you peal back the layers of this health tax credit argument, what you come away with is an issue of "fairness and honesty", i.e.:
I don't think this is a matter of legality. For, if you take the health care reform law in totality - the PPACA and the HCERA - it's clear that the health care credit would apply to all who qualify no matter if they apply for insurance through a state-run Exchange or a federally maintained Exchange. This all comes down to "YOU LIE" all over again....an attempt to discredit the President.Is it fair that only insurance applicants within those States that did establish an Exchange receive health care credits?
Did the federal government tell the truth when it said that ALL insurance applicants within an Exchange who met income eligibility would qualify for a health care credit?