Halbig v. Burwell, No. 14-5018 (D.C. Cir. 2014)Annotate this Case
Appellants challenged the IRS's interpretation of 26 U.S.C. 36B, enacted as part of the Patient Protection and Affordable Care Act, under the Administrative Procedure Act (APA), 5 U.S.C. 706(2)(A). The district court held that the ACA's text, structure, purpose, and legislative history make "clear that Congress intended to make premium tax credits available on both state-run and federally-facilitated Exchanges." The district court held that even if the ACA were ambiguous, the IRS's regulation would represent a permissible construction entitled to Chevron deference. The court concluded, however, that the ACA unambiguously restricts the section 36B subsidy to insurance purchased on Exchanges "established by the State." Accordingly, the court reversed the judgment of the district court and vacated the IRS's regulation.
The court issued a subsequent related opinion or order on September 4, 2014.