Courts issue conflicting rulings on health care law

A U.S Court of Appeals ruling could mean premium increases for more than half of the 8 million Americans who purchased health insurance coverage on the federal exchange.

The St. Louis Post-Dispatch reports, in a case before the U.S. Court of Appeals for the District of Columbia Circuit, a group of small business owners argued the law authorizes subsidies only for people who buy insurance on exchanges established by states.

In a 2-1 ruling, the court agreed. The decision affects consumers who bought coverage in the 36 states that utilizes the federal marketplace and do not have a state-run exchange – including Missouri.

However, in a second ruling handed down only hours later, the New York Times reports the United States Court of Appeals for the Fourth Circuit, in Richmond, upheld the subsidies, saying the initial rule issued by the Internal Revenue Service was “a permissible exercise of the agency’s discretion.”

Both decisions are part of a series of legal battles to central components of the Affordable Care Act.

The Times reports the White House rejected both rulings and anticipated the Justice Department will ask that the entire appeals court review the subsidy issue.

Read more from the St. Louis Post-Dispatch.