September 2014

Yesterday, the D.C. District Court of Appeals agreed to an en banc review of the Halbig v Burwell case on federal premium subsidies under the Affordable Care Act (ACA).  Earlier this year, a three judge panel of the D.C. District Court ruled in the case (by a 2-1 vote) that Internal Review Services erred in its decision to grant federal ACA premium subsidies to people who signed up for insurance through federally run health insurance exchanges.

The two judge majority, both appointed by Republican Presidents, while noting the ACA legislation was unclear, felt that Congress only intended to grant federal subsidies to those people who signed up through state-run health insurance exchanges.  The dissenting judge, appointed by a Democratic President, noted that sections of the ACA legislation were unclear, that earlier case precedent gives federal agency discretionary authority when legislation is nebulous, and that the IRS actions were consistent with the clearly stated overall goals of the ACA.

The en banc review of the case means all members of the D.C. District Court of Appeals will review and vote on the case.  The D.C. District Court of appeals has five judges appointed by Republican Presidents and eight judges appointed by Democrats, leading many to believe an en banc review will overturn the three-judge panel decision.