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Federal Appeals Court Panel Deals Major Blow to Health Law

Washington Post (07/22/14) Sandhya Somashekhar

Tax subsidies that are a central component of the Affordable Care Act may not be offered in at least 50% of the states, a DC Circuit Court of Appeals panel has ruled. The panel concurred with plaintiffs who argued that the language of the law prevents the government from granting subsidies to people in states that have not established their own insurance exchanges. If the ruling is upheld it likely would undermine the law. Without the subsidies many people would have to pay substantially more out-of-pocket for health coverage.