Federal exchange states aren't eligible for tax subsidies
As we explained earlier this year, Halbig v. Sebelius is a case launched by conservative small business owners in states using the federal exchange. They argue that, because the Affordable Care Act only specifically mentions subsidies for exchanges "established by the state," the federal exchange can't grant subsidies. And if they can't get subsidies, then the insurance becomes unaffordable, so they want the court to block the IRS from implementing the law. The government argues that, obviously, they meant for everyone to get subsidies, and the case is ignoring all the prep work the administration has done to provide subsidies in all states.
Since subsidies are the main appeal of the law — for many, that's the "affordable" part — taking them away would hit hard. And as Mother Jones notes, there's a chance they'll get their wish. "The case seems destined for the Supreme Court, where a conservative majority is already hostile to Obamacare," writes Mother Jones' Stephanie Mencimer.