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healthcare reformThe authors of the PPACA envisioned a system in which state governments would establish health insurance exchanges in which individuals could shop for health coverage and receive tax credits and subsidies for the purchase of qualifying health plans. After the law was passed, however, a majority of states refused to set up their own exchanges, leaving the task to the federal government. The IRS subsequently issued a rule purporting to authorize tax credits and cost-sharing subsidies in both state and federal exchanges. In Halbig v. Sebelius and three other cases pending in federal court, plaintiffs challenge the authority of the IRS to grant tax credits and cost-sharing subsidies in federal exchanges. These suits will help clarify the limits of agency authority to implement the PPACA and, if successful, these suits could have a significant impact on the implementation of the PPACA.


  • Prof. Jonathan Adler, Johan Verheij Memorial Professor of Law, Case Western Reserve University School of Law
  • Prof. Nicholas Bagley, Assistant Professor of Law, University of Michigan Law School

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