A panel of the U.S. Court of Appeals for the District of Columbia Circuit struck down a major part of the federal health-care law Tuesday, ruling that the insurance subsidies that help millions of Americans pay for coverage are illegal in three dozen states.
Less than two hours later, a panel of the U.S. Court of Appeals for the 4th Circuit, based in Richmond, handed down a contradictory ruling on the issue in a separate case, raising the possibility of yet another high-stakes battle over the law playing out before the Supreme Court.
The conflicting rulings give traction to the most serious current threat to the Affordable Care Act, which has been battered by a series of legal challenges since it was enacted four years ago. The dispute centers on whether the subsidies may be awarded in states that chose not to set up their own insurance marketplaces and instead left the task to the federal government.