ACA Subsidies Likely To Survive Despite Circuit Split

Law360, New York (July 22, 2014, 7:59 PM EDT) -- Government subsidies on the Affordable Care Act’s federal exchanges will almost certainly survive despite conflicting rulings issued Tuesday from two circuit courts, although a messy judicial and legislative process may play out for years before the financial assistance is secure nationwide, experts say.

One of Tuesday’s opinions came from the D.C. Circuit, where two GOP-nominated judges outflanked a Democratic appointee and declared that the ACA authorized subsidies only in exchanges “established by the state," as opposed to the three dozen marketplaces launched by the federal government.

The D.C. Circuit reversed a lower court, which found that the ACA, when viewed in...

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