Obamacare Dealt Setback by Federal Appeals Court07/22/14
TUESDAY, July 22, 2014 (HealthDay News) -- In a bombshell ruling
that could potentially play havoc with Obamacare, a federal appeals
court said Tuesday that the financial subsidies provided to
millions of Americans who bought health insurance though the
federal HealthCare.gov website exchange are illegal.
In a 2-1 ruling, the federal appeals court for the District of
Columbia said that as the law is written, the subsidies may only be
provided to people who buy health plans in states that run their
own health insurance exchanges.
"We reach this conclusion, frankly, with reluctance," circuit judge Thomas Griffith wrote for the majority.
"At least until states that wish to can set up exchanges, our ruling will likely have significant consequences both for the millions of individuals receiving tax credits through federal exchanges and for health insurance markets more broadly," he concluded.
But in a dissenting opinion, Harry Edwards, a member of the
three-judge panel, said, "This case is about appellants'
not-so-veiled attempt to gut the Patient Protection and Affordable
The subsidies are a crucial piece of the Affordable Care Act,
also known as Obamacare.
Thirty-six states chose not to create their own websites to sign
up for insurance coverage under the Affordable Care Act. Many are
headed by Republican governors who oppose the controversial
The law, passed by Congress in 2010, requires virtually all
Americans to have health insurance coverage or pay a penalty in the
form of a tax. The law is particularly unpopular with Republicans,
who view it as an unconstitutional intrusion by the federal
government into individual rights.
Opponents of the law maintain that Congress never intended
people who purchased plans in states that relied on the federally
operated exchange to receive access to premium tax credits.
Families USA, a consumer advocacy group that supports the
Affordable Care Act, said Tuesday's decision is not the final
"It will inevitably be placed on hold pending further proceedings," said Ron Pollack, the group's executive director.
Visit the official federal government website for details on
coverage under the
Copyright © 2014
. All rights reserved.
Please be aware that this information is provided to supplement the care provided by your physician. It is neither intended nor implied to be a substitute for professional medical advice. CALL YOUR HEALTHCARE PROVIDER IMMEDIATELY IF YOU THINK YOU MAY HAVE A MEDICAL EMERGENCY. Always seek the advice of your physician or other qualified health provider prior to starting any new treatment or with any questions you may have regarding a medical condition.