In another blow to President Barack Obama’s signature legislation, a three-judge panel on the D.C. Circuit Court of Appeals has ruled in favor of the plaintiff, declaring the law’s premium subsidies are invalid in more than two dozen states due to the law’s specific language.

“This has the potential to gut the exchanges and the employer requirements of Obamacare,” says Alden Bianchi, practice group leader of Mintz Levin’s employee benefits and executive compensation practice, of Tuesday’s Halbig v. Burwell ruling. “The issue will likely end up before the Supreme Court.”

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