States shifting to the federal Obamacare Web platform this year — and those trying to get away from it — are confident their consumers can get government subsidies to help them pay for health coverage, even if the courts uphold a ruling that restricts the tax credits to insurance exchanges established by a state.
The Obama administration has roughly six weeks to ask the entire D.C. Circuit Court of Appeals take a second look at its bombshell ruling in Halbig v. Burwell, a 2-to-1 decision that said the Internal Revenue Service unlawfully extended the subsidies to states that rely on the federally run marketplace.
A second appellate court said federally run exchanges could take in subsidies, setting up a potential battle before the Supreme Court.
In the meantime, several of the 15 state-run exchanges are in a state of flux and looking at what the court battle could mean for their residents down the road. The key point from exchange personnel in each of these states is that while they might rely on federal web support, or have in the past, they consider their market to be established by the state.