10/1/13. Obama sued for ‘illegal’ Obamacare move. wnd.com
“Another lawsuit has been filed against the president’s health care takeover strategy – this time by a Florida company complaining that Barack Obama had no authority to simply go in and change the law once it had been approved by Congress and signed.
It was last July, according to reports, that Obama simply announced he was changing the law, which had scheduled a requirement for employers to provide adequate and affordable health insurance starting Jan. 1, 2014, or pay huge fines.
Obama, responding to complaints from businesses, simply changed the effective date of that requirement to Jan. 1, 2015, strategically after the 2014 elections.
Obamacare already has been the subject of dozens of lawsuits, and the U.S. Supreme Court last year ruled that it is a tax, and therefore constitutional, even thought he Obama administration had argued it wasn’t a tax.
There is another case now heading toward the U.S. Supreme Court, too, that could end up with critical sections being determined to be illegal.
Last July, reports said Obama was answering “vehement complaints from employer groups about the administrative burden of reporting requirements, though it may also affect coverage provided to some workers.”
U.S. Treasury spokesman was the point person designated to talk about what Obama was doing.
The delay, he said, “will allow us to consider ways to simplify the new reporting requirements consistent with the law.”
And he said it “will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.”
The lawsuit, filed by Judicial Watch, however, is attempting to draw the reins on such arbitrary and capricious changes to existing federal law.
It was filed in the U.S. District Court for the Southern District of Florida on behalf of Boca Raton-based employer Kawa Orthodontics LLP, and it argues that the delay of the employer mandate “exceeded [the Obama administration’s] statutory authority, is arbitrary, capricious, and contrary to law, and is otherwise unlawful.”
The employer mandate, which subjects certain large employers to tax penalties if they do not offer “affordable,” “minimum essential” health insurance coverage to their employees, is “one of the pillars” of Obamacare, according to Judicial Watch.
But Obama’s decision to suddenly announce a change in the law caused “Kawa Orthodontics to lose the value of its substantial efforts to prepare for the controversial provision taking effect beginning next year.”
“[Kawa Orthodontics] expended substantial time and resources, including money spent on legal fees and other costs, in preparation for the ‘employer mandate’ taking effect on January 1, 2014….[The company] would not have expended its time and resources and incurred these anticipatory costs in 2013 if the mandate had not been scheduled to take effect until 2015, but instead would have spent its time, resources, and money on other priorities,” the action explains.
The action is being brought on behalf of Larry Kawa of Kawa Orthodontics against the U.S. Department of Treasury, Secretary of Treasury Jack Lew, the Internal Revenue Service and IRS Acting Director Daniel Werfel.
Kawa is a longtime Florida resident and business leader with a company that employs about 70.
The complaint alleges that the decision to delay the employer mandate violates the Administrative Procedure Act, which forbids “agency action” that exceeds an agency’s statutory authority, is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law. The complaint asks the court to enter a judgment declaring the delay to be unlawful and an injunction prohibiting the delay.
“We obviously object to the employer mandate and the entire Obamacare law, but we understand that, under the U.S. Constitution, the law can only be changed by legislation passed by Congress and signed by the president. President Obama would delay the damage of his health care scheme until after the 2014 congressional elections. But politics do not trump the Constitution or the rule of law,” said Judicial Watch President Tom Fitton. “And to paraphrase Ulysses S. Grant, the best way to ensure the repeal of a bad law is to enforce it vigorously.”
Kawa added, “I am tired of Washington, D.C., picking winners and losers and giving preferential treatment to those inside the Beltway. This is just more of D.C. career politicians protecting their own.”
The legal challenge was filed on the same day Obamacare websites intended to be used by the government to recruit millions of Americans to pay for Obamacare opened.”