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Court Ruling Deals Blow to Healthcare Subsidies — Physician’s First Watch

Medical News |
July 23, 2014

Court Ruling Deals Blow to Healthcare Subsidies

By Kelly Young

Edited by David G. Fairchild, MD, MPH

A federal appeals court has determined that the federal government cannot subsidize health insurance plans in the many states that decided not to set up their own insurance exchanges.

The Obama administration said that it would appeal the ruling and that low- and middle-income people who bought policies in affected states will continue receiving financial aid for their premiums as the appeal works its way through the courts.

In a 2-to-1 decision in the U.S. Court of Appeals for the District of Columbia Circuit, the judges concluded that the law restricts subsidies to consumers in state-established exchanges, meaning that consumers who bought plans in the 36 states participating in the federal insurance exchange would be excluded.

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