A few hours after the court of appeals in Washington demanded the Obama administration to switch off federal subsidies to consumer via the country-run healthcare exchanges, a Virginia court of appeals ruled that subsidies should continue to flow.
With Obamacare’s future in question, opinions raised the chances of another Supreme Court battle regarding the Obama’s current law.
Both circuits were split on an issue of the Affordable Care Act deployment. That is, whether the IRS (Internal Revenue Service) had the power under the statute approved by Congress to prolong federal subsidies to coverage picked via federal exchanges.
Plaintiff attorneys is saying the IRS overstepped its boundaries. Meanwhile, the Obama administration thought otherwise saying the IRS was well within their domain.
The first of the two court rulings indicated that the language of the statute didn’t offer IRS that power.
Lawyers updated with the case say that everyone will eventually turn to the Supreme Court for answers.