Since July 22, when a federal appeals court panel dealt a potentially significant blow to Obamacare by ruling that participants in healthcare exchanges administered by the federal government in 34 states are not eligible for billions of dollars in tax subsidies, several facts have emerged which question Jonathan Gruber, an MIT economist and chief architect of Obamacare, and his opinions on whether the intent of Obamacare was that subsidies should only be available for state-run Obamacare exchanges. 

In response to the dismantling of Gruber’s position, the White House and Democrats are distancing themselves from him. Specifically, Democrats argue that Gruber was not a member of Congress and there is no evidence that anyone in Congress relied on him or his analysis. I think there is significant evidence to the contrary.

Three important background details:

  1. As described on the CBO web site – “Since its founding in 1974, the Congressional Budget Office (CBO) has produced independent analyses of budgetary and economic issues to support the Congressional budget process. The agency is strictly nonpartisan and conducts objective, impartial analysis, which is evident in each of the dozens of reports and hundreds of cost estimates that its economists and policy analysts produce each year.”

  2. Senator Max Baucus Chairman of the Senate Finance Committee said from the Senate floor on December 9, 2009, “[Gruber] takes the CBO data and, in some respects, he has helped CBO by giving some information to CBO that it otherwise does not have.”

  3. And, as Jane Hamsher wrote in an article published on the Huffington Post titled “How the White House Used Jonathan Gruber’s Work to Orchestrate the Appearance of Broad Consensus,” “In December 28, Gruber published an op-ed in the Washington Post — in which he neglected to mention his contract to consult with the White House on this very issue. He was asked point-blank if he had any contracts related to the piece for which he was being paid, and he said ‘no.’  The Post subsequently published a correction.”

    Therefore, we have the CBO using information that “it otherwise does not have” from a guy, who some if not most people did not know was a consultant to the White House on this exact issue, to develop independent analyses for Congress. Below are the eight key facts that prove that Gruber’s analysis was marketed as expert, independent analysis that Congress should and did rely on.

  1. HHS argued that Gruber was the only consultant that had the expertise it needed – HHS announced on February 25, 2009, it “intends to negotiate with Jonathan Gruber, Ph.D. on a sole sources basis for technical assistance in evaluating options for national healthcare reform. The basis for restricting competition is the authority 13.106-1(b) because only one source is reasonably available to satisfy agency requirements.”

  2. Senior Democratic Members of Congress gave Professor Gruber high praise for his “independent analysis”

  1. The White House praised and widely marketed Gruber’s Analysis

  • Then-current HHS Secretary Kathleen Sebelius released a report on December 3, 2009 that “highlighted the benefits of health insurance reform for businesses and released a new fact sheet regarding a recent analysis from the Congressional Budget Office.” The report included 16 footnotes highlighting sources for the report. The CBO was listed once and Professor Gruber was listed three times. No other individual was listed.

  • Nancy-Ann DeParle, Director of the White House Office for Health Reform, wrote on November 29, 2009 on Whitehouse.gov: “Jonathan Gruber, PhD, a MIT Economist who has been closely following the health insurance reform process, issued a compelling new report based on data from the non-partisan Congressional Budget Office.” DeParle characterized this document as a “compelling report” based on data from the “non-partisan” CBO.
  • The White House and Democratic Party widely distributed Gruber’s reports – As the Huffington Post article by Jane Hamsher highlights, “On Monday the 23rd, the DNC was sending the Brownstein column around in its entirety… one of 71 emails they would send touting Gruber’s work and it was included in OFA’s Monday Morning News Clips on BarackObama.com.”

  • Congress used Gruber’s computer models – Senator Baucus said in his December 9, 2009 speech on the Senate floor: “In addition to CBO, MIT’s Jon Gruber has also done a study on premiums. And what does he conclude? He concludes, using Congressional Budget Office data, the Senate bill could mean people purchasing individual insurance would save every year $200 for single coverage and $500 for family coverage in 2009 dollars. Most people think he is one of the best outside experts. He has big computer models.”
  • Gruber argued that he was integral to Congress and Obamacare

  • As every day passes, more information surfaces making it abundantly clear that the intent of Obamacare was to create strong incentives for governors to set up exchanges in their own states. Gruber is very clear about this, and Congress relied on Gruber. When this strategy failed, the White House and HHS tried to change their position. Unfortunately for them, too much public information exists showing their original intent. If federal exchange subsidies are prohibited, Obamacare is over. Ending Obamacare is the step we need for Oblimination – the reversal of Obama’s failed policies.