Obamacare Aid for Buyers on Exchange Splits Appeals Courts

One court strikes down tax subsidies for needy buyers of healthcare coverage, while the other upholds subsidies.

Two U.S. appeals courts reached opposite conclusions on the legality of a key financing provision of the Affordable Care Act, increasing the chance of another showdown at the Supreme Court over President Barack Obama’s signature health-care law.

In majority ruling by judges appointed by Republican presidents, the U.S. Court of Appeals in Washington struck down an Internal Revenue Service rule providing tax subsidies to needy customers on the insurance exchange run by federal authorities, saying Congress authorized payments only on state- run marketplaces.

No Division

“There’s not going to be a division of the circuits, ultimately,” Jost said.

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