Obamacare Ruling Won't Immediately Affect Michigan

Jul 23, 2014

Court ruling on Obamacare tax breaks has no immediate effect in Michigan

An appeals court ruling Tuesday out of Washington DC could jeopardize tax subsidies that help nearly 240,000 Michiganders buy health coverage under Obamacare.

Credit wikimedia commons

People in Michigan who buy their own coverage have to go to the federal website because the Michigan Legislature refused to authorize a state-run exchange. The US Court of Appeals in Washington ruled that federal tax subsidies can't go to consumers who buy through the federally operated exchange. That would affect people in Michigan and 35 other states. But that's not the final word -- another appeals court has upheld the tax subsidies.

"The ruling will not affect the financial assistance they may have received to help pay for their health insurance plan," said Shawn Dhanak is with the Michigan office of Enroll America. "Michiganders who obtained coverage through the federal marketplace will continue to benefit from any help they may have received."

It could take a year or more for courts to settle the question. The next step would be to ask the appeals court in Washington to put the issue before a full bank of judges on the circuit.