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Last updated on Wednesday, July 23, 2014
(WASHINGTON, DC) - The White House says health subsidies under the Affordable Care Act will continue to flow for the time being despite a major setback delivered by a federal appeals court.
The federal appeals court ruled Tuesday that individuals cannot use tax credits or subsidies to buy health insurance on federally run exchanges. The divided panel said those cost-sharing subsidies can be used only through state-run health exchanges, not the federal exchanges.
The ruling potentially derails billions of dollars in subsidies for many low- and middle-income people who bought policies. But White House spokesman Josh Earnest says while the case works its way through the courts, it has "no practical impact" on tax credits. He said the White House is confident in Justice's legal case.
Earnest says there's mixed legal opinions on whether people who buy insurance through state-based markets can get subsidies.
The ruling affects consumers in the 36 states served by the federal marketplace.
The administration is expected to appeal the ruling.
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