A Federal appeals court panel rules that subsidies in Federal Obama-Care exchanges are illegal.
The panel ruled that the tax subsidies that are central to the program may not be provided in 36 states dealing a crippling blow to Barack Obama’s signature law.
In the second significant legal blow to the law this summer, a three-judge panel of the D.C. Circuit Court of Appeals ruled that the Affordable Care Act barred the government from giving subsidies to people in states that decided not to set up their own health insurance marketplaces and are relying on the federal exchange instead.
The ruling affects 27 states, most with Republican leaders who oppose the law, and another nine states that partially opted out.
The government immediately announced it was seeking an “en banc” hearing, requesting that the case be heard before the entire appeals court.
This ultimately may end up at the Supreme Court.
If subsidies for half the states are barred, it represents a potentially crippling blow to Barack Obama’s signature law, which relies on the subsidies to make insurance affordable for millions of low- and middle-income Americans.
Full report here.