Barack Obama's Legal Transgressions: A Comprehensive Review

Barack Obama, the 44th president of the United States, has been accused of breaking several laws during his presidency. However, the validity of these claims is questionable.

Obama's alleged violations include delaying certain aspects of the Affordable Care Act (Obamacare), granting exemptions to Congress from Obamacare, and political profiling by the IRS. Some have also accused him of establishing a shadow government to protest and overthrow his successor, Donald Trump, which was debunked by PolitiFact.

While Obama has been criticised for these actions, it is important to note that he also passed several landmark bills, including the Affordable Care Act, the Dodd-Frank Wall Street Reform, and the Don't Ask, Don't Tell Repeal Act.

Delaying Obamacare's out-of-pocket caps

The Affordable Care Act, also known as Obamacare, was signed into law by President Barack Obama in 2010. The act included out-of-pocket caps, which limited the maximum amount of money an individual would have to pay out-of-pocket for covered services in a policy period.

In 2014, the out-of-pocket maximum was $6,350 for an individual and $12,700 for a family. These numbers have been revised upwards over the years, with the maximum out-of-pocket costs for 2023 set at $9,100 for an individual plan and $18,200 for a family plan before marketplace subsidies.

In 2015, the Obama administration delayed the implementation of the out-of-pocket caps for one year. This delay was met with criticism and was seen as a breach of the law. The administration argued that the delay was necessary to ensure a smooth transition to the new healthcare system and to avoid disruptions in the insurance market. They also claimed that the delay would not significantly impact consumers' costs. However, consumer advocacy groups argued that the delay put consumers at risk of higher costs and went against the intent of the Affordable Care Act.

The delay in implementing the out-of-pocket caps can be seen as a break of the law by the Obama administration. The Affordable Care Act set specific limits on out-of-pocket costs, and by delaying the implementation, the administration went against the letter and spirit of the law. This move may have been motivated by practical considerations, but it also undermined the protections afforded to consumers by the Affordable Care Act.

Delaying Obamacare's employer mandate

The Patient Protection and Affordable Care Act, also known as Obamacare, was signed into law by President Obama in 2010. The Act included an "employer mandate" which required employers with 50 or more full-time equivalent employees to provide health coverage to at least 95% of full-time employees and their dependents up to the age of 26, or pay a fee. This mandate was originally set to begin in 2014, but in July 2013, the Obama administration announced that it would be delayed until 2015.

The delay was a response to requests from employer groups who needed more time to comply with the mandate and had faced long delays in federal rule-making and technical guidance. The delay was also influenced by the negative impact the mandate was having on employment, with employers cutting back hours, converting full-time positions to part-time, and delaying hiring decisions. The mandate increased the cost of every full-time equivalent employee in organisations with more than 50 employees, essentially taxing full-time employment relative to part-time positions.

The delay in enforcing the employer mandate had implications for health insurance exchanges and state Medicaid programs. The mandate included reporting requirements, which would have allowed exchanges and state Medicaid programs to verify an individual's eligibility for government-sponsored coverage. Without this information, these programs would need to rely on personal attestations, increasing the risk of fraud and abuse. The delay also removed a financial disincentive for employers to drop coverage, as they would not be subject to the penalty for not providing health insurance for their employees.

The Obama administration's decision to delay the employer mandate was part of a broader strategy to implement healthcare reform in a careful and thoughtful manner, taking into account the complex and varied information systems and technology changes required by the Act.

Delaying Obamacare's insurance requirements

On 2 July 2013, the Obama administration announced that it would allow large employers an extra year to comply with a requirement that they offer their employees "minimum essential coverage" or pay a tax if one or more employees received premium tax credits. This was subsequently extended for another year for smaller employers. The administration had concluded that the employer mandate could not be enforced until an ACA requirement that employers report the coverage they offered to their employees was implemented, and that further work was needed before a practical, not unduly burdensome, reporting process could be implemented.

On 14 November 2013, the administration notified state insurance commissioners that it would allow states the option of delaying enforcement of various ACA requirements that would have prohibited, as of 1 January 2014, the renewal of noncompliant policies in the individual and small-group markets. States have subsequently been allowed to permit renewals of these policies through 2016. The ACA recognised a principle of "grandfathering" of existing coverage, and the administration concluded that extending grandfathering to 2013 coverage would avert temporary hardship and disruption for those who would otherwise have lost their current coverage and would ease their transition to coverage that complied fully with the 2014 insurance requirements.

For similar reasons, the administration has also delayed the effective dates of several other requirements of the statute. These delays are not uncommon when implementing complex regulatory schemes, and similar delays were implemented by both Republican and Democratic administrations when statutory deadlines proved unworkable.

The Obama administration's delays are not constitutionally questionable. The US Constitution directs the President not merely to "execute the laws" but also to "take care that the laws be faithfully executed". This has been understood to mean that the President is to exercise judgment, not with robotic obeisance to individual statutory terms or provisions but with fidelity to the overall statute and the purposes of Congress in enacting the underlying laws.

Exempting Congress from Obamacare

One of the most common accusations against Barack Obama is that he exempted Congress from the Affordable Care Act, also known as Obamacare. However, this claim is false.

The Affordable Care Act, signed into law by Obama in 2010, was a major reform that expanded Medicaid and provided health care subsidies, established an individual mandate, health insurance exchanges, and banned denying coverage based on pre-existing conditions. While it is true that Congressional staffers are treated differently under the Act, this is because, unlike other large employers in the US, Congress is banned from maintaining its current healthcare plan.

The controversy stems from a proposed regulation from the Office of Personnel Management (OPM) in August, which notes that the Affordable Care Act requires all Members of Congress and staff to purchase health care on the Exchanges. However, the Act does not address the employer contribution that Congress and staff currently receive, which is a standard part of employer-provided health care plans in the US.

The OPM argues that Congress had the opportunity to remove the employer contribution while designing the Affordable Care Act but chose not to. As a result, the current law requires Congress to purchase insurance on the exchanges and provide the employer contribution.

Despite the falsehood of the claim, Senator David Vitter (R-LA) has proposed an Amendment to the legislation that would rewrite a portion of the Affordable Care Act to remove the "special exemption" for Congressional staffers. This Amendment would expand the group required to purchase insurance on the Exchanges while removing the employer contribution benefit.

Expansion of the employer mandate penalty through IRS regulation

Barack Obama's presidency saw a focus on healthcare reform, with the Affordable Care Act (ACA) being one of his landmark bills. The ACA, also known as "Obamacare", required certain employers, known as Applicable Large Employers (ALEs), to provide affordable health insurance coverage to their employees. ALEs are organisations with 50 or more full-time employees and include nonprofits and government entities.

Under the ACA, ALEs must offer their full-time employees and their dependents affordable health coverage that meets Minimum Essential Coverage (MEC) and provides minimum value. If they fail to do so, they are subject to employer mandate penalties, also called shared responsibility payments. These penalties are paid to the Internal Revenue Service (IRS).

The ACA's employer shared responsibility provisions set out the requirements for ALEs regarding health insurance coverage. If an ALE does not offer MEC to at least 95% of its full-time employees and their dependents, it is liable for a penalty. Additionally, if an ALE offers health coverage that is not affordable or does not provide minimum value, and an employee receives a premium tax credit to purchase coverage through the Health Insurance Marketplace, the ALE is also subject to a penalty.

The IRS is responsible for enforcing these provisions and collecting the penalties from non-compliant ALEs. The penalties are calculated based on the number of full-time employees and can be substantial, acting as a deterrent for ALEs.

In 2025, the IRS announced a decrease in the employer mandate penalties for the first time. This reduction provided some relief to ALEs struggling to meet the requirements and potentially encouraged them to reevaluate their health benefit strategies.

The expansion of the employer mandate penalty through IRS regulation was a significant aspect of Obama's healthcare reforms. By enforcing these penalties, the IRS played a crucial role in ensuring that ALEs complied with the ACA's requirements, promoting access to affordable health coverage for employees.

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