A federal judge is allowing this lawsuit to go forward. Here’s the issue:
Under the act, individuals can qualify for subsidies, in the form of tax credits, if they buy health insurance through an exchange “established by the state.” A majority of states, however, chose not to set up their own marketplaces, leaving the federal government to run some or all of the exchanges in 36 states.
The challengers contend that the health law precludes subsidies for consumers who buy insurance through those federally run exchanges instead of state exchanges. They say the Internal Revenue Service contravened the text of the law when it promulgated a regulation last year making clear that the subsidies were available to individuals who bought insurance on either type of exchange. (WSJ)