Federal Exchanges Cannot Offer Subsidies, Paper States
Federally run health insurances exchanges under the federal health reform law cannot legally provide subsidies to help U.S. residents purchase coverage, according to a paper to be published in Health Matrix: Journal of Law-Medicine. In May, the Internal Revenue Service issued a rule allowing both state-based and federally run exchanges to administer the subsidies. However, the paper states that the "IRS rule is illegal," adding, "It is not authorized by [the reform law], nor can it be justified on other grounds."
- "ACA Opponents Want To Kill Law via Subsidies" (Feder, Politico, 7/16).