In a potentially crippling blow to the new federal health care law, a federal appeals court ruled on Tuesday that the government may not provide subsidies to encourage people to health insurance on the new marketplaces run by the federal government. The U.S. Court of Appeals for the District of Columbia Circuit, in a two-to-one decision, ruled that those subsidies are only available on “exchanges” run by state governments.With luck the DC Circuit Court decision will fall under en banc review, and this will not go to the Supreme Court. Because if it does, a horrific decision seems likely.
The U.S. Court of Appeals for the Fourth Circuit, in a decision directly contrary to the D.C. Circuit decision discussed below, on Tuesday afternoon upheld the government rule that cleared the way for subsidies for those buying health insurance on exchanges run by the federal government. … The split in the appeals courts, if it remains after potential en banc reviews, would practically guarantee Supreme Court review. --SCOTUSblog