US Court of Appeals strikes down key provisions of ACA

  • July 22, 2014

In the case of Halbig vs. Burwell, the United States Court of Appeals for the District of Columbia Circuit has ruled that a key piece of the Affordable Care Act involving subsidies to low-income citizens in certain states is unconstitutional.

The decision is the result of an appeal brought last year which argued that certain sentences and phrases used in the drafting of the ACA would unconstitutionally require states that did not have exchanges to enact federal laws. To date, only 15 states and the District of Columbia have set up health care insurance exchanges. Court documents maintain that in those states, provisions of the Internal Revenue Service, particularly the Administrative Procedure Act, would be violated if the federal mandate to citizens and employers were upheld.

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