ACA Subsidies Ruling to Be Reconsidered

The earlier ruling from a 3-person DC appeals court that invalidated healthcare subsidies for people purchasing plans on federally run marketplaces will be reconsidered by the full circuit court.

The earlier ruling from a 3-person DC appeals court that invalidated healthcare subsidies for people purchasing plans on federally run marketplaces will be reconsidered by the full circuit court.

The original decision posed a potential setback for the Affordable Care Act as the judges determined that subsidies could only be provided to residents in states that set up their own health insurance marketplaces. As such, the millions of Americans living in states using federally run marketplaces would not be eligible for subsidies.

However, just hours after the DC ruling, a Virginia court upheld the legality of subsidies in every state — regardless of whether the exchanges were federally or state-run — in a separate, but similar case.

After the July 22 ruling, the US Department of Justice asked the entire court to review the decision. Now the case will be heard by the court’s 11 active judges. When the 3-judge panel delivered the ruling in July, the 2 Republican appointees were in the majority. On the full panel, the Democrats have the majority, 7-4.

Oral arguments will begin on Dec. 17.