
DC Court Ruling is a Setback for ACA
A federal appeals court panel ruling in Washington, DC, if upheld, could majorly impact the Affordable Care Act.
A federal appeals court panel ruling in Washington, DC, if upheld, could majorly impact the Affordable Care Act. According to the
The 2-1 ruling determined that the health law “does not authorize the Internal Revenue Service to provide tax credits for insurance purchased on federal exchanges,” adding that it, “plainly makes subsidies available only on exchanges established by states.”
Twenty-seven states —including Texas, Georgia, and South Carolina —opted to utilize the federal exchange in place of a state-based one. Without federal tax credits, millions of low- and middle-income Americans would lose access to affordable health plans.
"Section 36B plainly makes subsidies available in the Exchanges established by states,"
Judge Harry Edwards, who disagreed with the conclusions of Judge Randolph and Judge Thomas Griffit, said that the decision was a "not-so-veiled attempt to gut" the ACA. He wrote that the judgment of the majority "portends disastrous consequences."
A Robert Wood Johnson Foundation and the Urban Institute
However, many lower courts interpret the law differently, arguing that all states should be eligible for federal tax credit subsidies. The ruling is expected to be reviewed by a full panel of judges on the DC Circuit Court of Appeals under order of the Obama Administration. If the ruling is not struck down at that level, it may be reviewed and reversed by the Supreme Court.
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