Court Ruling On Obamacare Tax Breaks Has No Immediate Effect In Michigan

Jul 22, 2014

An appeals court ruling Tuesday out of Washington DC could jeopardize tax subsidies that help nearly a ¼ million Michiganders buy health coverage.

We have more from The Michigan Public Radio Network’s Rick Pluta.

People in Michigan who buy their own coverage have to go to the federal website because the Michigan Legislature refused to authorize a state-run exchange. The US Court of Appeals in Washington ruled that federal tax subsidies can’t go to consumers who buy through the federally operated exchange. That would affect people in Michigan and 35 other states. But that’s not the final word -- another appeals court has upheld the tax subsidies.

Shawn Dhanak is with the Michigan office of Enroll America. He says that means there won’t be any immediate changes in the tax subsidies for Michigan residents.

“The financial assistance made available by the Affordable Care Act helps consumers afford health coverage and it’s made a huge difference for consumers here in Michigan,” he says. 

It could take a year or more for courts to settle the question.