BREAKING: Federal Appeals Court Panel Says Most Obamacare Subsidies IllegalPosted: July 22, 2014
Dan Mangan reports: In a potentially crippling blow to Obamacare, a top federal appeals court Tuesday said that billions of dollars worth of government subsidies that helped 4.7 million people buy insurance on HealthCare.gov are not legal under the Affordable Care Act.
“Now, Obama and Company will look for John Roberts to pull their fat out of the fire again. I am afraid he will.”
— Wesley J. Smith
In its decision, a three-judge panel said that 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. Plaintiffs in the case known as Halbig v. Burwell argued that the ACA, as written, only allows that often-significant financial aid to be issued to people who bought insurance on a marketplace set up a state.
The decision is certain to be challenged by the Obama Administration, and does not immediately have the effect of law. But if it is ultimately upheld, it would cause insurance rates for those people who lost the subsidies to dramatically rise.
HealthCare.gov serves residents of the 36 states that did not create their own health insurance marketplace. About 86 percent of its 5.45 million customers received a subsidy to offset the cost of their coverage this year because they had low or moderate incomes…(read more)
This is a breaking news story. Please check back for updates.
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- A Lawsuit Could Destroy Obamacare In These 36 States (businessinsider.com)
- The Court Ruling that Could Kill ACA (planetpov.com)
- Five million Americans in for premium spikes if Obamacare challenge is successful (dancingczars.wordpress.com)
- Obama Awaits Another Court Ruling That Could Deal Blow To Obamacare (personalliberty.com)
- Federal appeals court decision looms in subsidy challenge that could unravel ObamaCare – Healthcare.gov stumps even smartest millennials (foxnews.com)