ACA Tax Subsidy Dispute May End Up Before High Court

Law360, New York (September 15, 2014, 10:42 AM EDT) -- On Sept. 4, 2014, the full D.C. Circuit agreed to rehear its original panel decision that insureds covered under health insurance plans on a federally facilitated exchange could not receive federal income tax subsidies to help pay for that coverage. The D.C. Circuit's decision had the immediate effect of vacating the 2-1 panel decision in Halbig v. Burwell,[1] issued on July 22, 2014, which struck down the Internal Revenue Service's rule providing Affordable Care Act premium tax credits to low-income earners on the exchanges, regardless of their state of residence. Oral arguments for the en banc D.C. Circuit hearing are scheduled for Dec. 17, 2014. The full D.C. Circuit will likely render its opinion during or after Spring 2015. Meanwhile, premium tax credits continue to be available nationwide....

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