ACA Exchanges Dealt Blow As DC Circ. Limits Subsidies

By Jeff Overley (July 22, 2014, 10:26 AM EDT) -- A divided D.C. Circuit on Tuesday ruled that consumers shopping on Affordable Care Act exchanges run by federal regulators cannot have their insurance premiums reduced by federal tax credits, a major decision that once again clouds the landmark law's future.

In a 2-1 decision that broke along partisan lines, GOP-appointed judges ruled that the ACA's text limits the availability of subsidies by explicitly authorizing them only "through an exchange established by the state."

In three dozen states, the federal government established exchanges after state officials declined to do so, and the D.C. Circuit majority — Judges Thomas B. Griffith and A....

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