Federal Judge Rejects Challenge to ACA Subsidies

A federal judge in Washington, D.C., Wednesday strongly rejected a major challenge to the healthcare reform law, ruling that the law allows the federal government to offer premium subsidies to people who buy insurance coverage through the federal insurance exchange and not just through state-run exchanges.

But an appeal is expected in the case, and several lawsuits involving the same issue are pending around the country. Experts say it's possible that the U.S. Supreme Court ultimately will decide the issue.

Halbig v. Sebelius

U.S. District Judge Paul Friedman, an appointee of President Bill Clinton, granted summary judgment to the government in the case of . He threw out a suit filed by opponents of the law that would have blocked federal subsidies for low- and middle-income families who buy insurance through a federally run exchange serving 36 states.

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Source: Modern Healthcare