Indiana Challenge to Obamacare Tax-Credit Rule Goes Ahead

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The legal war over the meaning of an Affordable Care Act health-care tax credit provision that produced conflicting U.S. appeals court rulings intensified with a decision to let an Indiana challenge go forward.

U.S. District Judge William T. Lawrence in Indianapolis yesterday denied a request by the Internal Revenue Service to dismiss that part of the state’s 2013 lawsuit. Indiana claims the IRS rule allowing credits for those who sign up for Obamacare on federal exchanges is illegal because it conflicts with an ACA provision limiting such credits to state-exchange enrollees.