UPDATE—Judge allows suit challenging ObamaCare subsidies

While the media and public are focused on the calamitous ObamaCare rollout and glitch-ridden health exchange websites, several court cases challenging the Affordable Care Act, or ACA, are working their way through the courts. Today, one of those cases could deal ObamaCare a severe legal blow. Judge Paul Friedman of the federal district court for...

While the media and public are focused on the calamitous ObamaCare rollout and glitch-ridden health exchange websites, several court cases challenging the Affordable Care Act, or ACA, are working their way through the courts. Today, one of those cases could deal ObamaCare a severe legal blow.

Judge Paul Friedman of the federal district court for the District of Columbia ruled this morning that a legal challenge to ObamaCare in Halbig v. Sebelius can move forward. The judge did not grant a preliminary injunction which would have halted subsidies to the exchanges. He has promised an expedited ruling by mid-February.

This would mean that subsidies to the exchanges would be halted.

The central issue of this case is a challenge to whether the Internal Revenue Service can provide tax credits on those exchanges that are run by the federal government. This includes Illinois’ exchange. A preliminary injunction would shut down all subsidies and would stop the IRS from imposing penalties on employers for not providing and individuals for not obtaining health insurance coverage.

The stakes are high. According to today’s Chicago Tribune editorial: “Federal judges in Washington, D.C., and Virginia are deciding if the law actually prevents the federal government from offering premium subsidies to low- and middle-income Americans in Illinois and 35 other states. If so, millions of people could be required to pay much more for insurance — or could just walk away.”

Another federal District Court will consider a similar challenge brought by four Virginia plaintiffs on Oct. 31.  Similar cases in Oklahoma and Indiana are also making their way through the court system. Indeed, the fate of the ObamaCare might ultimately be determined outside of the Washington beltway.