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Conflicting Rulings Issued on ACA Subsidies

Posted 07.23.14

Two Courts of Appeals differ on decisions

Two rulings were issued yesterday regarding whether the IRS decision to allow subsidies for everyone that acquired coverage through state and federal exchanges. The law is currently written to allow for subsidies in state run exchanges with no mention of the federally run exchange. Thirty six states opted to not build state exchanges and to let the federal exchange be the mechanism on where individuals would access coverage.

The Obama administration could ask the US Court of Appeals for the District of Columbia for a full 11 member panel to hear the case since it was originally heard by a 3 member panel. More on these decisions can be found in the July 23, 2014 NAHU Newswire.

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