Industry insiders say the effects of two contradictory court rulings Tuesday on the legality of subsidies under the Patient Protection and Affordable Care Act could have a long-term — and possibly disastrous — effect on the law — but they’re also not counting on it happening quite yet.

The often-controversial law suffered its latest blow Tuesday when a U.S. appeals court ruled the government can’t give financial assistance to anyone buying coverage on the exchanges run by federal government.

The lawsuit — Halbig v. Burwell — targets a May 2012 Internal Revenue Service rule that allows subsidies to be offered through the federal exchange.

Recommended For You

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.