Oklahoma Insurance Commissioner John D. Doak is applauding a D.C. Circuit Court of Appeals decision to strike down an IRS rule regarding subsidies on the federal exchange. The ruling could bolster a 2011 lawsuit filed by Oklahoma Attorney General Scott Pruitt.


“The law is unambiguous,” said Doak. “If its supporters had actually read it before they voted for it they would have seen that the subsidies were only for state-established exchanges. These exchanges have been so burdensome that 36 states chose not to create one and some states that did are now abandoning them.”


In September 2011, Oklahoma was the first to raise a legal challenge to the legality of the IRS rule that would cause billions in illegal subsidies to be paid out, despite Congress having never authorized those payments.


“Oklahoma has challenged this blatant disregard for the law for years and I look forward to the resolution of the lawsuit brought by Attorney General Pruitt. This overtaxing and unauthorized spending at the federal level has to stop,” said Doak.


The court’s decision goes into effect in 45 days, unless the federal government requests an appeal from the full 11 judges on the court. If the appeal to the full court is denied, the decision goes into effect seven days after the denial. Other courts are considering the same issues outside of the District of Columbia and Oklahoma. The appeals may eventually reach the Supreme Court of the United States.