Dueling Court Decisions Could Mean Big Setback for Affordable Care Act

Two U.S. appeals courts on Tuesday issued conflicting decisions on subsidies for health insurance coverage purchased on federal health exchanges, according to major news outlets.

Two hours after a three-judge panel for the U.S. Court of Appeals in Washington overturned a lower court ruling by voting 2-1 against subsidies on federal health exchanges, a federal appeals court in Richmond, Va., unanimously voted in favor of them.

At issue is whether tax credits can be offered to consumers outside of state-run health exchanges instituted by the Affordable Care Act, also known as Obamacare. Only 16 states have established their own exchanges, so people in most states—including Missouri and Kansas—must use a federal-run exchange instead.

Elizabeth Wydra, chief counsel at the liberal Constitutional Accountability Center, told USA Today: “If there is a split in the circuits, then I think the Supreme Court would have to step in.”