Separate U.S. Appeals Court Upholds Subsidies Under Obama Health Law

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BARACK OBAMA
With the Key Bridge, linking Washington and Northern Virginia in the background, President Barack Obama speaks about the economy and transportation, Tuesday, July 1, 2014, at Georgetown Waterfront Park in Washington. The president said 700,000 jobs could be at risk next year if Congress doesn't quickly agree on how to pay for highway and transit programs. (AP Photo/Susan Walsh) | ASSOCIATED PRESS


WASHINGTON, July 22 (Reuters) - The U.S. Court of Appeals for the Fourth Circuit upheld a federal regulations that implemented subsidies that are vital to President Barack Obama's healthcare overhaul, in direct conflict with another ruling on the issue handed down earlier on Tuesday.

A three-judge panel unanimously said the law was ambiguous, and that it would defer to the IRS's determination that subsidies could go to individuals who purchased health insurance on both federal and state-run exchanges.

A separate panel from a federal appeals court in Washington on Tuesday morning said the IRS could not offer premium tax credits to people who purchase insurance through the federal insurance marketplace that serves most of the 8 million consumers who have signed up for private coverage for 2014. (Reporting by Aruna Viswanatha)

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