A similar challenge was upheld by the U.S. Court of Appeals for the D.C. Circuit. Subsidy opponents turn to SCOTUS

Four Virginians whose challenge to Obamacare subsidies suffered a defeat last week are now asking the Supreme Court to hear the case.

Their lawsuit was dismissed by the U.S. Court of Appeals for the 4th Circuit, which ruled that the Obama administration can legally award the subsidies through federally run insurance exchanges — not just those run by the states themselves. The individuals behind King v. Burwell say the subsidies are being improperly awarded through Virginia’s federally run exchange.


Sam Kazman, general counsel for the Competitive Enterprise Institute, said the goal is to get the issue resolved as quickly as possible, since millions of Americans obtaining insurance subsidies could be affected. The conservative group is funding the litigation.

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“A fast resolution is also vitally important to the states that chose not to set up exchanges, to the employers in those states who face either major compliance costs or huge penalties, and to employees who face possible layoffs or reductions in their work hours as a result of this illegal IRS rule,” Kazman said in a statement Thursday. “Our petition today to the Supreme Court represents the next step in that process.”

A similar challenge to the health care law’s subsidies, brought by both individuals and businesses, was upheld by the U.S. Court of Appeals for the D.C. Circuit. The Obama administration is expected to appeal that ruling by asking for a full court hearing.