More On

How did two Circuits come to differing conclusions on ACA subsidies?

The 4th Circuit ruled the ACA was purposefully ambiguous hours after the D.C. Circuit called the subsidies illegal

On July 21, 2014, two United States appeals courts reached different decisions about the legality of subsidies under the Affordable Care Act (ACA). The subsidies assist approximately 4.7 million people, or 86 percent of all enrollees. These subsidies offset the cost for low or moderate income individuals in an effort to provide affordable coverage. A large percentage of these individuals pay less than $100 per month in premiums after their subsidies are applied. In short, these subsidies make the cost of healthcare affordable for millions of Americans. provides insurance for residents of the 36 states that did not create their own health insurance marketplace. At the end of open enrollment, the “federal exchange” helped 5.4 million Americans sign up for “Affordable Care” plans.

The issue

Contributing Author

author image

Kimberly James

Kimberly James is Of Counsel in the Houston office of McGlinchey Stafford . Kim handles labor and employment law, as well as other general business...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.