Courts divided over ACA subsidies
The future of subsidized healthcare is up in the air for Mainers with insurance through the Affordable Care Act, after two federal appeals courts issued conflicting rulings today.
The New York Times reported that the U.S. Court of Appeals for the Fourth Circuit, in Richmond, ruled that states that use the federal insurance exchange under President Barack Obama’s health care law are entitled to receive subsidies from the Internal Revenue Service.
That ruling came hours after the U.S. Court of Appeals for the District of Columbia Circuit ruled that the ACA “does not authorize the Internal Revenue Service to provide tax credits for insurance purchased on federal exchanges.” It said the federal subsidies are only available through the states that have their own insurance exchanges.
The D.C. court’s ruling would impact Maine and 35 other states that operate without their own insurance exchanges, according to the Associated Press. More than 39,000 out of the more than 44,000 Maine citizens who signed up for insurance through the federal exchange have received a subsidy, according to U.S. Sen. Angus King's office.
The decision is not final as other courts continue to weigh the issue, the NYT noted. The White House told the newspaper that it rejects the D.C. court’s ruling and that it expects the Justice Department to ask a full appeals court to review the ruling. Obama said in a statement to the AP that federal subsidies will continue despite the court's ruling.
King said in an email to Mainebiz that he is surprised by the D.C. court’s decision “because it is so inconsistent with the underlying purposes of the law.”
He said he looks forward to a review by the full appeals court.
“In the meantime, there are a number of us in the Senate who have been looking for bipartisan fixes to the ACA that will help cover even more Americans,” King said, “and as we await a broader review of the decision, I think this an opportunity for Congress to put aside partisan differences to solve problems that will impact millions around the country.”
View the D.C. court’s ruling here.
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