Another federal judge has ruled to narrow subsidies to buy health insurance under Obamacare, making it more likely the U.S. Supreme Court will take up a case championed by conservatives.
U.S. District Judge Ronald White of Oklahoma found that the Internal Revenue Service improperly allowed people to receive subsidies for insurance bought on the federally run Healthcare.gov website.
The Affordable Care Act included a section which appeared to limit subsidies to people who bought insurance through state-run exchanges. Supporters say that was just poorly worded, while critics of the law argue it undermines the implementation of the law.
In the ruling, White said an IRS ruling allowing subsidies for users of HealthCare.gov was “arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law.”
The judge stayed the ruling and it will have no immediate effect. However, coupled with another ruling in a D.C. Circuit Court, it increases the odds the Supreme Court will get involved, something the law’s defenders have hoped to avoid.
