Federal Appeals Court Rules Obamacare Subsidies Illegal
WASHINGTON D.C. (Worthy News)– Dealing a major blow to President Obama, a federal appeals court on Tuesday ruled that subsidies to purchase insurance were illegally granted in 36 states in which the federal government runs the exchanges, the Washington Examiner reported.
At issue in the case, Halbig v. Burwell, are the subsidies that the federal government provides for individuals purchasing insurance through Obamacare. Though the text of the law says the subsidies were to go to individuals obtaining insurance through an “exchange established by the state,” a rule released by the Internal Revenue Service subsequently instructed that subsidies would also apply to exchanges set up on behalf of states by the federal government.
But the U.S. Court of Appeals for the D.C. Circuit concluded that Obamacare “unambiguously restricts the … subsidy to insurance purchased on Exchanges ‘established by the State.'” — Source
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