Two federal appeals courts have recently issued contradictory rulings on whether individuals enrolling in health plans offered through federal government Marketplaces are eligible for subsidies to help pay for their coverage. These ruling has no impact for California as  Covered California is a state run exchange.

The D.C. Circuit Court of Appeals ruled that subsidies could go only to individuals enrolled through state established Marketplaces. The Fourth Circuit Court of Appeals (Richmond, VA) ruled that individuals enrolled through federal government established Marketplaces are eligible for subsidies.

Only 16 states and the District of Columbia have set up their own Marketplaces. All other states defer to the federal Marketplace.

In both cases, a review by a full panel of judges on the Circuit Courts may be requested. Appeals to the Supreme Court are likely if the lower courts remain split.

The law remains unchanged and current subsidies will remain in place until the legal case plays out.

Nevertheless these rulings are confusing consumers who are just starting to learn about the impact of new Affordable Care Act. Solid Health Insurance Services will keep you updated with any new developments in California Health Care world.