SCOTUS takes up Obamacare appeal; White House decries 'partisan' lawsuit

The U.S. Supreme Court on Friday agreed to hear a legal challenge to a key part of President Barack Obama’s signature health care reforms that, if successful, would limit the availability of federal health insurance subsidies for millions of people.

In a one-sentence order, the court said it would decide a case brought by conservative challengers to the Affordable Care Act (ACA), often referred to as Obamacare.

The plaintiffs are business owners and individuals who object to the law. They say that, based on the language in the act, federal subsidies may only be paid in states that have their own online health insurance exchanges. The White House slammed the lawsuit as "just another partisan attempt to undermine the Affordable Care Act," that would "strip millions of American families of tax credits,"

At present 36 states do not have exchanges of their own, relying instead on the central government’s healthcare.gov website. Five million people could be affected, analysts have estimated, if the administration loses the legal fight and subsidies disappear from the federal marketplaces set up in states that did not create their own exchanges.

White House press secretary Josh Earnest said the congressional intent behind the law is for eligible customers regardless of where they live to receive assistance from the government to subsidize the purchase of health care. He promised a vigorous defense before the high court.

"We continue to have high confidence in the legal argument, both from a legal perspective and a common-sense perspective. This is a law that is working, that's why you'll see a vigorous defense here," Earnest said.

The court will decide whether the law authorizes the federal subsidies that help millions of low- and middle-income people afford their health insurance premiums, covering an average of 76 percent of the cost.

The plaintiffs are appealing a ruling made in July by the 4th U.S. Circuit Court of Appeals, which upheld Internal Revenue Service regulations that allow health-insurance tax credits under the Affordable Care Act for consumers in all 50 states.

In the appeal accepted Friday, opponents of the subsidies argued that the court should resolve the issue now because it involves billions of dollars in public money.

The court rarely steps into a case when there is no disagreement among federal appellate courts, unless a law or regulation has been ruled invalid.

But at least four justices — the minimum number needed to grant review — apparently agreed with the challengers that the issue is important enough to decide now.

Supporters of the health care law were flabbergasted and accused the court of verging into politics. The news came a week ahead of the second open enrollment season for subsidized private health insurance under the law.

The Obama administration said subsidies cover, on average, 76 percent of federal exchange consumers’ premiums. Customers now pay an average of $82 on total monthly premiums averaging $346. The federal subsidy of $264 a month makes up the difference.

Responding to the Supre Court announcement,The White House issued a statement in which it said: "The ACA is working. these lawsuits won't stand in the way of the Affordable Health Act and the millions of Americans who can now afford health insurance because of it."

Wire services