07-22-2014, 04:00 PM
The DC circuit court ruled 2-1 that it is illegal for the IRS(a federal entity) to give health care subsidies to citizens in States not implementing their own exchanges, and thereby picked up by the Federal exchange.
DC circuit ruling
"Though the PPACA repeatedly states those subsidies are available only “through an Exchange established by the State,” and there are indications IRS officials knew they did not have the authority to issue subsidies through federal Exchanges, the IRS is dispensing billions of dollars of taxpayer subsidies through federal Exchanges anyway."
Forbes article
According to this Forbes article, it also seems that individuals and employers in the States not offering an exchange may also be free of the ACA mandate as it would also be illegal for the IRS to tax (fine) them for non-compliance.
DC circuit ruling
"Though the PPACA repeatedly states those subsidies are available only “through an Exchange established by the State,” and there are indications IRS officials knew they did not have the authority to issue subsidies through federal Exchanges, the IRS is dispensing billions of dollars of taxpayer subsidies through federal Exchanges anyway."
Forbes article
According to this Forbes article, it also seems that individuals and employers in the States not offering an exchange may also be free of the ACA mandate as it would also be illegal for the IRS to tax (fine) them for non-compliance.