Tuesday, July 22, 2014
Affordable Care Act---F.U.B.A.R. Supreme Court Throws out Subsidies for Federal Health Benefit Exchanges
WASHINGTON — A federal appeals court ruled Tuesday that the government could not subsidize health care premiums for people in three dozen states that use the federal insurance exchange, a ruling that could upend President Obama’s health care law.
The 2-to-1 ruling could potentially cut off financial assistance for more than 4.5 million people who were found eligible for subsidized insurance in the federal exchange, or marketplace.
Under the Affordable Care Act, the court said, subsidies are available only to people who obtained insurance through exchanges established by states.
The law “does not authorize the Internal Revenue Service to provide tax credits for insurance purchased on federal exchanges,” said the ruling, by a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit. The law, it said, “plainly makes subsidies available only on exchanges established by states.”
For many people, their share of premiums could increase sharply, making insurance unaffordable