Federal Courts Issue Conflicting Rulings on Subsidies in Federal Exchanges

On July 22, 2014, two federal appeals courts—the District of Columbia Circuit Court and the 4th U.S. Circuit Court—issued inconsistent rulings on the availability of subsidies in states with FFEs.

In the more prominent of the two (because of the potential ramifications to the Affordable Care Act), the D.C. Circuit Court ruled in a 2-1 opinion that the IRS cannot authorize subsidies in states that use federally funded exchanges.

However, the 4th Circuit Court unanimously upheld the availability of the ACA’s subsidies in states that use federally funded exchanges.

You can read more about the rulings and their impact on employers in the bulletin below.

Federal Courts Issue Conflicting Rulings on Subsidies in Federal Exchanges

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