A federal appeals court has ruled the Obama administration cannot subsidize insurance premiums for 7 million Americans, dealing a blow to the Affordable Care Act. The ruling may be a prelude to an appeal to the U.S. Supreme Court.
Two judges with the D.C. Circuit Court of Appeals ruled Tuesday that the text of the reform law clearly forbids income-tax subsidies to go to low- and middle-income Americans who use one of the 34 federally run insurance exchanges. The subsidies have been flowing since Jan. 2014, based on a 2012 interpretation of the law by the IRS.