Conflicting Rulings Issued On Affordable Healthcare Act

President Barack Obama's health care law is enmeshed in another big legal battle after two federal appeals courts issued contradictory rulings on a key financing issue within hours of each other Tuesday.

A divided court panel in Washington, D.C. called into question the subsidies that help millions of low- and middle-income people pay their premiums, saying financial aid can be paid only in states that have set up their own insurance markets, or exchanges.

About 100 miles to the south in Richmond, Virginia, another appeals court panel unanimously came to the opposite conclusion, ruling that the Internal Revenue Service correctly interpreted the will of Congress when it issued regulations allowing consumers in all 50 states to purchase subsidized coverage.

Oklahoma's attorney general says a decision by a federal appeals court in Washington, D.C. bolsters the state's lawsuit that challenges a similar provision of the Affordable Care Act.

“Early on, we recognized this major problem with how the Obama administration was implementing the Affordable Care Act,” Attorney General Pruitt said.

“Other states and private plaintiffs like Halbig followed our lead in challenging the law and today’s ruling by the DC Circuit Court of Appeals is a victory for Oklahoma’s lawsuit and others challenging the law. Our lawsuit challenges the administration’s attempt to ‘fix’ the health care law through executive fiat. This ruling gives us great confidence that Oklahoma’s lawsuit will ultimately prevail.”

Oklahoma is one of 36 states that did not establish its own exchange, and instead residents purchased coverage through a federal exchange.

Pruitt is expecting a decision soon on his lawsuit in federal court in Muskogee that challenges an IRS rule on the subsidies and the assessment of tax penalties..

?9/19/2012 Related Story: Oklahoma Attorney General Amends Complaint Against Affordable Care Act?

A White House spokesman said the administration would seek a hearing by the full 11-judge court on the Washington, D.C. ruling.

The Associated Press contributed to this report.