What happens when you combine partisan politics with an irresponsible regulatory regime? You get the White House decision on Tuesday to extend ObamaCare grants beyond what is legally allowed under tax law. The Biden administration’s new rule to suppress what has been cleverly touted as the “family issue” is a political game that should worry anyone concerned about regulatory transparency in Washington.
As I’ve written in these pages, the White House has long sought to expand coverage of ObamaCare exchanges in this way. But the law is clear; it made subsidies available for exchange plans if the employee had to pay more than about 10% of their income for a self-only plan. Basing eligibility for the subsidy on the cost of coverage for oneself alone meant that families who had to pay more than 10% of their income for a family plan lost the subsidy. This created the so-called family glitch, even though the vast majority of families in these situations were insured through an employer plan.