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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Expansion of ACA Exchange Subsidy Availability

One aspect of the Affordable Care Act (ACA) that was designed to draw individuals to a marketplace plan was the availability of premium subsidies for certain individuals.  These subsidies are not available for people who purchase individual health insurance policies outside of the exchange.

However, with the technical difficulties that have prevented many people from enrolling in plans through the exchanges, the Centers for Medicare & Medicaid Services (CMS) is making subsidies available for certain individuals who were unable to enroll through a Marketplace.

The attached document provides more information on this important development.

Exchange Subsidy Availability Expanded in 2014 Due to Technical Difficulties

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