Affordable Care Act Subsidies

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We have to pass the bill so we can find out what’s in it. The bill passed, the DC Circuit Court of Appeals has read it, and found out what’s not in it. The Affordable Care Act says subsidies are available for plans purchased on state run exchanges. That was an inducement for states to set up their own exchanges. Still, 36 states chose not to build exchanges and left the job to the feds. People with plans from Federal exchanges aren’t eligible for subsidies, says the court.

Subsidies All Around

Another court – the Fourth Circuit -says the plain language in the bill wasn’t the intent of Congress. In other words Congress didn’t mean what it said. Not an unreasonable assumption.

For now the IRS will continue to allow subsidies for health care plans bought on federal exchanges.

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