Federal Appeals Court Rules Health Care Subsidies Do Not Apply to Federal Exchanges

A big blow today to the president’s health care law, potentially impacting millions of low and middle income people.

A federal appeals court ruled that the Affordable Care Act only allows insurance subsidies in states that have their own exchanges.

That could mean premium increases for more than half of the eight million people who bought taxpayer-subsidized plans.

The ruling would affect anyone who bought their coverage through federal insurance marketplaces or exchanges in 36 states.

 However, the Obama administration says the health care subsidies will continue despite the court decision.