The tea party has won the first round in a lawsuit that questions the legality of the Kentucky Health Benefit Exchange that Gov. Steve Beshear set up last year by executive order.
Franklin County Circuit Judge Phillip J. Shepherd refused to dismiss the lawsuit on Thursday, as had been requested by attorneys for the state.
The state argued unsuccessfully that taxpayers don’t have legal standing to challenge the legality of the Kentucky Health Benefits Exchange, which is intended to help uninsured people arrange insurance coverage under the federal health care overhaul.
Tea party activist David Adams filed the lawsuit last month, claiming Beshear created the exchange without necessary legislative approval. Adams wants Shepherd to order work on the exchange to cease.