News

Obamacare subsidy case could be headed to Supreme Court

Obamacare subsidy case could be headed to Supreme Court

SUPREME COURT:The petition requests the U.S. high court decide the issue after two lower U.S. court rulings created uncertainties last week regarding the legitimacy of subsidies for individuals enrolled on federally run exchanges under the Affordable Care Act, or Obamacare. Photo: Reuters

(Reuters) – The U.S. Supreme Court has been asked to review a case about whether the federal government can subsidize health insurance for millions of Americans, a party involved in the lawsuit said on Thursday.

The petition requests the U.S. high court decide the issue after two lower U.S. court rulings created uncertainties last week regarding the legitimacy of subsidies for individuals enrolled on federally run exchanges under the Affordable Care Act, or Obamacare.

The Competitive Enterprise Institute, which is coordinating and funding the cases, filed the petition, according to the not-for-profit’s website.

The twin appeals court rulings, handed down by three-judge panels in Washington, D.C., and Richmond, Virginia, fell in line with partisan disagreements over healthcare reform. Two judges appointed by Republican presidents decided against the administration in the District of Columbia and three judges appointed by Democrats ruled in favor in Virginia.

The U.S. Court of Appeals for the District of Columbia Circuit ruled in a 2-1 decision that the language in the Affordable Care Act dealing with subsidies shows they should only be provided to consumers who purchase benefits on exchanges run by individual states.

However, plaintiffs in the D.C. Circuit case, known as Halbig v. Burwell, claimed that Congress did not intend to provide subsidies through federally operated marketplaces.

While the Supreme Court has broad discretion over which cases to take, a split among lower courts can be a big factor in its deciding whether to hear an appeal.

The Supreme Court upheld the Obamacare law on constitutional grounds in 2012 but allowed states to opt out of a major provision involving Medicaid coverage.

Analysts estimate that as many as 5 million people could be affected if subsidies disappear from the federal marketplace, which serves 36 states through the website HealthCare.gov.

(Reporting by Narottam Medhora and Amrutha Penumudi in Bangalore; Editing by Lisa Shumaker)

Recent Headlines

1 hour ago in Viral Videos

Who’s your daddy?

Fresh
16-overlay-10

When you're a baby and your dad is a twin, life can be confusing.

3 hours ago in Entertainment

Johnny Depp wigs out as Donald Trump in spoof biopic

16-overlay-11

The Hollywood actor dons a Trump-style hairpiece to lampoon the presidential hopeful in the 50-minute comedy for Funny or Die alongside a star-studded cast including Alfred Molina, Henry Winkle

3 hours ago in Entertainment

Another ‘Harry Potter’ book in the works

harrypotter

Fans will have the chance to read another installment in J.K. Rowling's wizard series when her new play is published as a book.

4 hours ago in Viral Videos

WATCH: Oh mother …

23-overlay-3

Is it the worst "Family Feud" answer ever? Judge for yourself.

6 hours ago in Entertainment, National

Shkreli is sued over his $2 million Wu-Tang Clan album

Updated
Pharmaceutical chief Martin Shkreli listens on Capitol Hill in Washington, Thursday, Feb. 4, 2016, during the House Committee on Oversight and Reform Committee hearing on his former company's decision to raise the price of a lifesaving medicine. Shkreli refused to testify before U.S. lawmakers who excoriated him over severe hikes for a drug sold by a company that he acquired. (AP Photo/Susan Walsh)

Shkreli has bragged that he had no plans to listen to the album, but bought it to "keep it from the people."