Another Blow to Affordable Care Act: Court Rules No to Tax Credits

Published 07/22 2014 12:29PM

Updated 07/22 2014 12:42PM

In another dramatic blow to a key Affordable Care Act program, a Federal Appeals Court ruled Tuesday that individuals cannot use tax credits or subsidies to buy health insurance on federally run exchanges. The divided panel said those cost-sharing subsidies can be used only through state-run health exchanges, not the federal exchanges.
The court's decision could make it harder to ensure affordable coverage for millions in the 34 states that have chosen not to set up their own regulated health insurance marketplaces.
The administration is expected to appeal the ruling.

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