circuit split

Just hours after the U.S. Court of Appeals for the D.C. Circuit threw out the federal tax regulation that implements the Obamacare subsidies available to people with annual incomes of up to 400 percent of the federal poverty level, the Fourth Circuit has upheld them, the National Law Journal's Marcia Coyle reports: "In King v. Burwell, the three-judge panel of the U.S. Court of Appeals for the Fourth Circuit rejected arguments that the subsidies—tax credits offsetting the cost of insurance for low- and moderate-income persons—are limited only to insurance purchased through state-created exchanges under the health insurance law."
 

The U.S. Supreme Court granted certiorari in a case this week on how inherited individual retirement accounts should be treated in bankruptcies, Reuters reports. The Seventh Circuit ruled that creditors could access an IRA inherited by the owners of a failed pizza shop because the IRA ceased to be retirement funds when inherited. However, the Fifth and Eighth Circuits have held that IRAs don't cease to be retirement funds when they are transferred, Reuters also reports.

Even though the Third Circuit has held that "secular, for-profit companies aren't afforded religious protection and the constitutional rights of their owners don't pass through to the corporate entity," a district-court federal judge sided with employers that are challenging Obamacare's contraceptive-coverage mandate on the grounds that it violates their freedom of religion, The Legal Intelligencer, Pennsylvania's legal newspaper, reported. The Legal also reported that U.S. District Chief Judge Joy Flowers Conti of the Western District of Pennsylvania denied a request from the Obama administration for an indicative ruling on the application of the Third Circuit case when Conti had granted an injunction for a plaintiff from the contraception mandate.

The issue is being primed for the U.S. Supreme Court. A circuit split is present on the issue between the Third Circuit and the Tenth Circuit.