A new Supreme Court challenge for 'Obamacare'

WASHINGTON (AP) — The Supreme Court agreed Friday to hear a new challenge to President Barack Obama's health care law — a case that threatens subsidies that help millions of low- and middle-income people afford their health insurance premiums.

The justices said they will review a federal appeals court ruling that upheld the Internal Revenue Service's regulations that allow health-insurance tax credits under the Affordable Care Act for consumers in all 50 states. Opponents argue that most of the subsidies are illegal.

The long-running political and legal campaign to overturn or limit the 2010 health overhaul will be making its second appearance at the Supreme Court. The justices upheld the heart of the law in a 5-4 decision in 2012.

The case probably will be argued the first week in March, with a decision expected by late June.

The health care law provides taxpayer-subsidized private health insurance for people who don't have access to coverage on the job. More than 7 million people are currently enrolled and most are getting help, which is keyed to household income and the cost of a benchmark plan.

Republicans in Congress overwhelmingly oppose the law, saying it kills jobs and exemplifies government overreach.

White House press secretary Josh Earnest promised a vigorous defense before the high court.

"This lawsuit reflects just another partisan attempt to undermine the Affordable Care Act and to strip millions of American families of tax credits that Congress intended for them to have," Earnest said.

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

"The need for a quick and final resolution of this question is undeniable," said Sam Kazman, general counsel of the Competitive Enterprise Institute, which is paying for the legal challenges to the health care law.

The issue at the Supreme Court is whether the wording of the law limits insurance tax credits only to consumers who live in states that have set up their own insurance markets, known as exchanges.

Only 16 states have set up their own exchanges, the Obama administration said in court papers. In the other 34 states, more than 4.5 million people are receiving subsidies to pay their insurance premiums. And the aid is considerable, covering an average of 76 percent of the premiums.

What made the court's intervention on Friday surprising was the lack of disagreement among federal appeals courts that typically is a requirement for Supreme Court review.

Supporters of the health care law were flabbergasted and accused the court of veering into politics.

The legal challenge to the subsidies is "the most serious existential threat" facing the Affordable Care Act," said Ron Pollack, executive director of Families USA, an advocacy group that supported Obama's health overhaul from its inception.