Separate U.S. appeals court upholds subsidies under Obama health law
Source: Reuters
Contrary to the D.C. Circuit decision today, the 4th Circuit upholds the Obamacare federal exchange subsidy. Maybe the Obama admin knew about the opinion, which would explain why it was so confident subsidies would flow pending court cases.
This all but guarantees the Supreme Court will take the case since there is a split in the Circuits.
From the opinion intro (emphasis added):
The plaintiffs-appellants bring this suit challenging the validity of an Internal Revenue Service (“IRS”) final rule implementing the premium tax credit provision of the Patient Protection and Affordable Care Act (the “ACA” or “Act”). The final rule interprets the ACA as authorizing the IRS to grant tax credits to individuals who purchase health insurance on both state-run insurance “Exchanges” and federally-facilitated “Exchanges” created and operated by the Department of Health and Human Services (“HHS”). The plaintiffs contend that the IRS’s interpretation is contrary to the language of the statute, which, they assert, authorizes tax credits only for individuals who purchase insurance on state-run Exchanges. For reasons explained below, we find that the applicable statutory language is ambiguous and subject to multiple interpretations. Applying deference to the IRS’s determination, however, we uphold the rule as a permissible exercise of the agency’s discretion. We thus affirm the judgment of the district court.
Read more: http://www.reuters.com/article/2014/07/22/usa-court-obamacare-fourthcircuit-idUSL2N0PX1CS20140722
It looks like the next stop is the SC.
I'll update with more shortly. The full opinion is at the above link.
In a dramatic split decision, two federal appeals court panels on Tuesday disagreed on whether billions of dollars of government subsidies that helped 4.7 million people buy insurance on HealthCare.gov are lega,
A panel of federal appeals court that covers Washington. D.C., ruled in a 2-1 decision that the subsidies are illegal. But about two hours later, the federal Fourth Circuit appeals court's own panel hearing a similar challenge in a 3-0 ruling said the subsidies are legal.
The split could lead to the US Supreme Court taking up the issue soon.
Earlier Tuesday, in the DC circuit , the judicial panel said such subsidies can be granted only to people who bought insurance in an Obamacare exchange run by an individual state or the District of Columbia—not on the federally run exchange HealthCare.gov.
The ruling relied on a close reading of language in the Affordable Care Act.
"Section 36B plainly makes subsidies available in the Exchanges established by states," wrote Senior Circuit Judge Raymond Randolph, who was joined by Judge Thomas Griffith in the majority decision on the case known as Halbig v. Burwell.
"We reach this conclusion, frankly, with reluctance. At least until states that wish to can set up their own Exchanges, our ruling will likely have significant consequences both for millions of individuals receiving tax credits through federal Exchanges and for health insurance markets more broadly."
http://www.cnbc.com/id/101819065
A three-judge panel for the U.S. Court of Appeals in Washington ruled Tuesday that subsidies may not be offered in the federal health exchange. The decision overturned a lower court ruling. Hours later the Fourth Circuit Court of Appeals offered its own decision, which upholds the Obama administration's arguments that subsidies can be applied in the federal exchange.
You can read the U.S. Appeals Court for the District of Columbia's decision here, and the decision from the U.S. Court of Appeals for the Fourth Circuit here.
Check back as we continue to update our summary of the day's coverage.
http://www.kaiserhealthnews.org/Daily-Reports/2014/July/22/halbig-decision.aspx
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