Federal Judge Rules Against Affordable Care Act Subsidies

May 13, 2016

House Speaker Paul Ryan called the ruling a “historic win for the Constitution and the American people."
Credit Gage Skidmore via Flickr

With eight months left in President Obama's term, House Republicans may have finally struck a blow against his signature health care law. 

At issue are the subsidies that the federal government pays to insurance companies to bring down out-of-pocket costs for individuals and families who earn between 100 and 250 percent of the federal poverty level. House Republicans filed the suit, contending that the subsidies are unconstitutional because the President authorized the spending without the approval of Congress. Over $175 billion has been spent so far. 

These subsidies are separate from the tax credits given directly to consumers to help cover the cost of monthly premiums. 

An appeal to Thursday's ruling is expected. Some experts say that if the decision is upheld, many insurers would pull out of the exchanges created by the law. The Washington Post has more. 

Judge strikes down Obama health law insurance subsidy in victory for House GOP