Circuit Split: D.C. Circuit Strikes, Fourth Circuit Upholds Code Sec. 36B Premium Tax Credit Regs


Jean Pawlow assessed the opposite conclusions of the two appellate court decisions regarding subsidies for health coverage via exchanges “established by the State,” saying that “if upheld, the Halbig decision [rejecting subsidies] has the potential to exempt many employers from the employer shared responsibility penalty. The penalty is tied to the number of employees receiving an Exchange subsidy. However, the release of an opposite decision (King) the same day adds to the uncertainty. We’ll see what happens as it continues through the judicial process.”