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Breaking: Appeals court vacates ruling on Obamacare subsidies

The U.S. Circuit Court of Appeals in Washington, D.C. has vacated a July ruling by a three-judge panel of that court striking down Obamacare subsidies issued through the federal exchange.

The full panel of the court will instead review that challenge in arguments expected in December.

Democratic appointees on the full court outnumber Republicans, and as Elise Viebeck notes in this post at The Hill, the ruling for a review by the full court is a victory for the Obama administration.

In July, the three-judge panel had ruled in Halbig v. Burwell  that tax credits under the Affordable Care Act can only be available to people who enrolled in new exchanges set up in states — not those who enrolled in the default federal program.

Hours later, though, the Fourth Circuit issued a contrary decision in King v. Burwell, upholding the availability of Affordable Care Act tax credits to health insurance purchasers on both state exchanges and the federal exchange.

In North Carolina, which did not set up a state exchange, more than 350,000 residents purchased health insurance on the federal exchange — and more than 90 percent did so with the assistance of subsidies.

 

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