JUDGE RANDOLPH: Would you agree with me that 36B [of the PPACA], which is what you’re talking about, and the way it’s structured is copied from the Health Coverage Tax Credit Act of 2002? Have you looked at that? I don’t know.
MR. DELERY: I have, awhile ago, Your Honor. I have not looked at it.
JUDGE RANDOLPH: Yes.
MR. DELERY: And so, I don’t know the history of whether it was copied for that. My understanding is that provision expired at January 1st of this year.
JUDGE RANDOLPH: Yes, because the states or whatever, but –
MR. DELERY: Right.
JUDGE RANDOLPH: It’s the same deal. But, I mean, the structure of that is the same.
MR. DELERY: I mean, I believe, Your Honor, although, again, I need to double-check, I think that that provision also included some forms of coverage that were available nationwide, so it’s not exactly an analogy to the Plaintiffs’ proposition here.
JUDGE RANDOLPH: Yes, that may be.
MR. DELERY: In addition to premium assistance, which the tax credits were intended to be in 36B, the statute also provided state assistance, and it’s in Section 18031. And –
JUDGE RANDOLPH: What is that under the Act?
MR. DELERY: I’m sorry, it’s 1311.
JUDGE RANDOLPH: 1311. Okay.
MR. DELERY: And – sorry about that, Your Honor. So,** incentives were provided to states under the cooperative Federalism model to establish their own exchanges, grants to assist in the start up costs,** ultimately then the costs would have to be borne by user fees, and also regulatory authority vested in the exchanges to, among other things to find the scope of qualified health plans that would be offered through the exchanges.** So, states if they wanted to elect to create an exchange they had an incentive to do it in terms of grants**, and regulatory authority that they would be allowed to do. But significantly –
JUDGE RANDOLPH: Was it after 2015 that they’re on their own?
MR. DELERY: The grants expire, and once the exchanges are up and running they have to be supported through user fees, not through the grant money. But –