A federal appeals court has ruled that the Obama administration cannot subsidize insurance premiums for 7 million Americans. Today, two judges with the D.C. Circuit Court of Appeals ruled that the text of the reform law “forbids income-tax subsidies to go to low-and middle-income Americans who use one of the 34 federally run insurance exchanges.” Officials from the D.C. Court of Appeals argue that the actual text of the law says that the sliding-scale tax credits are only available for coverage purchased “through an exchange established by the state” which only 16 states have done.
“Because we conclude that the ACA unambiguously restricts the section 36B subsidy to insurance purchased on Exchanges’ established by the State, we reverse the district court and vacate the IRS’s regulation,” the judges added.
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