U.S. Court of Appeals Ruling Hurts Texans

When President Barack Obama introduced the Patient Protection and Affordable Care Act, he and Congress intended for every eligible American to gain access to affordable health insurance coverage.

On Tuesday, July 22, the District of Columbia Circuit Federal Appeals Court limited a provision that allows Americans to use tax credits to pay for health insurance. The ruling stated that those receiving health insurance through federally-facilitated exchanges are not able to use tax credits, but those in state-run marketplaces are able to use tax credits.

Since Texas opposed the healthcare reform law, denying Medicaid expansion and refusing to run its own insurance marketplace, our state is among 36 in the nation that have a federally-facilitated insurance exchange, meaning that residents of those states cannot receive subsidies under this ruling.

Opponents of the law argue that Congress intended for subsidies to only go to people in states that established their own insurance marketplaces, and that the subsidies were meant to entice states to embrace the law and run their own marketplaces.

Unfortunately, government officials in Texas did not embrace the law and resisted establishing a Texas marketplace. This misstep has now threatened millions of Texans’ ability to purchase affordable healthcare coverage.

Complicating the matter, a panel of the U.S. Court of Appeals for the Fourth Circuit in Richmond, VA, rendered an opposite ruling two hours later on the same day. The three-judge panel unanimously decided that the law does not specify whether the subsidies should be available in states that decided not to run their own marketplaces and that the tax credits are essential in fulfilling the law’s primary goals.

Without subsidies, health insurance will be out of reach for millions who rely on the Affordable Care Act for health insurance coverage. In Texas, 82 percent of the approximately 300,000 residents enrolled in the federally-facilitated exchanges are currently receiving subsidies to help pay for their coverage.

Unfortunately, there are still more than 6 million uninsured residents in our state who could have benefitted from Medicaid expansion, and will only suffer more if the DC federal appeals court ruling is upheld by a higher court.

The conflicting rulings will likely force another Supreme Court battle when justices convene next year. Until then, neither ruling will have an immediate effect on consumers.

While we wait for a final decision, hard-working Americans will continue to receive subsidies to help pay for health insurance. I will continue to push for fairness and for affordable health insurance for my constituents and all Americans.