Judge Rules PPACA Tax Credits Lawful in Federal Marketplace

A federal judge has ruled subsidies helping consumers pay health insurance premiums are lawful in the 36 states with federally run Patient Protection and Affordable Care Act marketplaces, according to a report from The Hill.

U.S. District Court Judge Paul Friedman dismissed Halbig v. Sebelius yesterday on the grounds that Congress clearly intended to make premium tax credits available in all 50 states, regardless of whether they run their own exchanges, according to the report. 

In Halbig v. Sebelius, the plaintiffs — a group of small business owners — alleged the statutory language of the PPACA limited subsidies to exchanges established by the state and that the Internal Revenue Service had ignored "clear limitations" set by Congress in authorizing subsidies in states with federally-run exchanges, according to documents obtained by the American Civil Liberties Union.

The plaintiffs have said they will appeal Mr. Friedman's decision to the U.S. Court of Appeals for the District of Columbia, according to The Hill.

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