Obamacare faces legal challenge to subsidies

|By:, SA News Editor

The U.S. Court of Appeals in Washington is set to hear arguments today that Obamacare subsidies in the 36 states that haven't set up their own exchanges are illegal.

Plaintiff arguments hinge on the meaning of a directive that subsidies should go to income-qualified people enrolled in exchanges "established by the state."

So far judges have ruled that the federal government can provide subsidies to exchanges not created by individual states.

Still, if the government loses, says Ron Pollack of advocacy group Families USA, "the effort to expand insurance coverage in the vast majority of the states would pretty much be halted."

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