Courts and Health Care

Courts and Health Care

Two federal appeals courts reached conflicting conclusions Tuesday on whether the government may subsidize health care premiums for millions of Americans in three dozen states. 

In Washington, D.C., an appeals court ruled 2-1 that the Affordable Care Act did not authorize tax subsidies for millions of people in states that relied on an insurance marketplace, or exchange, set up by the federal government.  Only people who obtained insurance through insurance exchanges created by the states where they live qualify for help under the Affordable Care Act, that court decided.

In Richmond, Virginia, another federal appeals court panel came to the opposite conclusion. In that case, another set of judges ruled 3-0 that the IRS had reasonably interpreted ambiguous language in the law in a way that preserves the program in all states. 

Both rulings are sure to be appealed. Meanwhile, the insurance program will remain in force, at least for now. 

At issue is the fate of the health care law in 36 states where the federal government exchanges were used by health insurance customers. The Affordable Care Act subsidies are not being challenged in Vermont, 13 other states and the District of Columbia that set up their own exchanges.