IRS Accused Of Overreach On ACA Exchange Subsidies

Law360, New York (May 2, 2013, 3:31 PM EDT) -- A group of small business owners and individuals on Thursday sued the Internal Revenue Service in Washington federal court, alleging it had unlawfully exposed them to potential penalties through a rule expanding Affordable Care Act insurance subsidies to states that don’t run their own insurance exchanges.

According to the suit, the IRS' “subsidy expansion rule" unlawfully allows for premium-assistance tax subsidies for residents in states with federally run insurance exchanges, despite the ACA specifically limiting the subsidies only to states that choose to run their own...
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Case Information

Case Title

HALBIG et al v. SEBELIUS et al

Case Number



District Of Columbia

Nature of Suit

Administrative Procedure Act/Review or Appeal of Agency Decision


Paul L. Friedman

Date Filed

May 2, 2013

Law Firms

Government Agencies

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