As expected, a three-judge panel on the D.C. Circuit Court of Appeals
has voted by a two-to-one margin to defund Obamacare in states which did not set up their own health insurance exchanges. At issue is whether Obamacare allows subsidies in federally-established exchanges.
According to the plaintiffs in Halbig v. Burwell, Obamacare does not allow subsides in federally-established exchanges because the provision authorizing subsidies on exchanges defines subsidies as entities "established by the state" in which the exchange operates. The ruling is an absurdly narrow interpretation of the law, and will be immediately appealed to the full circuit court.
If it were to be upheld, it would essentially destroy Obamacare in most of the country, but based on the merits of the case, it should overturned when it goes before the full court. Even if it isn't overturned, the case could still be appealed to the Supreme Court, so while the anti-Obamacare ruling might make for a banner day for Fox News, there's nothing conclusive about it.
8:15 AM PT:
Very important: Obama admin official says that while appeals are pending Obamacare's "premium tax credits will continue, unchanged."
— @sahilkapur