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New Court Ruling Threatens Key Element of Obamacare

September 30, 2014

Obamacare subsidies will not be available for residents of states that are not running their own insurance exchanges, a federal judge ruled Tuesday.

Politico Pro reports:

Judge Ronald A. White said that the administration’s decision to allow subsidies to go through either a state-run health insurance exchange or the federal exchange is an improper and invalid reading of the Affordable Care Act and must be struck.

White’s ruling marks the second judgment against the government on the subsidy question and comes as the Supreme Court could decide whether to weigh in.

"The court holds that the IRS rule is arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law," White wrote in his ruling. The IRS had allowed people to get subsidies in all states.