The Supreme Court has decided to take up the issue of whether the tax subsidies provided through Federal Exchanges and processed by the IRS are constitutionally valid under the ACA as drafted.
Why is this a surprise? Because the Supreme Court is taking up the appeal in the King v. Burwell case in which the Appeals Court decided in favor of the Administration, and they are doing it before the Halbig case is decided by the DC Circuit Court of Appeals (which is also expected to rule in favor of the Administration). The standard practice is that the Supreme Court only intervenes if there is conflict among different Appeals Courts. Here, the Supreme Court is intervening before the Appeals Courts align their rulings in favor of the Administration.
Without the subsidies, the exchange becomes mathematically challenging for many customers to use. More would drop into the ranks of the uninsured. However, more businesses will probably cut health insurance (or offer their own subsidies) in order to get out of the health care business, which means the Exchanges continue to grow. But make no mistake, the Supremes intend to dismantle government tax subsidies to encourage people to buy health insurance.
http://talkingpointsmemo.com/...