Court Strikes Down Federal Obamacare Subsidies

In a potentially lethal blow to Obamacare, a federal appeals court has ruled that the federal government may not subsidize health insurance plans bought by people in states that decided not to set up their own marketplaces under Obamacare.

The law clearly says that states are to set up the exchanges. But 34 states opted not to, and the federal government took over in those states. The court ruled that federal government may not pay subsidies for insurance plans in those states.

First published July 22 2014, 7:37 AM

Maggie Fox

Maggie Fox is senior health writer for NBCNews.com and TODAY.com, writing top news on health policy, medical treatments and disease. She's a former managing editor for healthcare and technology at National Journal and global health and science editor for Reuters based in Washington, D.C. and London.She's reported for news agencies, radio, newspapers, magazines and television from across Asia, the Middle East, Africa and Europe covering news ranging from war to politics and, of course, health and science. Her reporting has taken Maggie to Lebanon, Syria and Libya; to China, South Korea, Thailand, the Philippines and Pakistan; to Bosnia, Croatia and Serbia and to Ireland and Northern Ireland and across the rest of Europe.Maggie has won awards from the Society of Business Editors and Writers, the National Immunization Program, the Overseas Press Club and other organizations. She's done fellowships at Harvard Medical School, the National Institutes of Health and the University of Maryland.