A counselor for the health care law speaks with taxi driver David Bilewu, a 39-year-old Nigerian immigrant in Chicago. Illinois set up its exchange through a federal partnership. M. Spencer Green/AP hide caption

A counselor for the health care law speaks with taxi driver David Bilewu, a 39-year-old Nigerian immigrant in Chicago. Illinois set up its exchange through a federal partnership.

In a rare and unexpected move, the U.S. Supreme Court has agreed to hear a new challenge to the Obama health care overhaul, dealing the White House yet another blow this week. Health care experts say an adverse ruling would be catastrophic for the health insurance program that the president has fought to enact and preserve.

The case centers on what some opponents of the law once called a "glitch." They have seized on that glitch to dismantle the heart of the health care law the tax credits and subsidies that make health insurance affordable for millions of low- and middle-income Americans.

What's more, Friday's action by the Supreme Court would appear to signal that at least four justices think the law's opponents have a reasonable case.

Under the health care law, each state is to set up its own health care exchange, and if it does not do so, the federal government steps in. As things have turned out, 36 states, more than two-thirds, have deferred to the federal government, most because of opposition from state Republicans, and a few because of state problems in setting up exchanges on their own.

The problem is that one subsection of the health care law says that the tax credits and health insurance subsidies that are at the heart of the law can only be paid out by "state-run exchanges." Opponents of the law contend this language means that low- and middle-income people buying insurance from the federally run exchanges are ineligible for the subsidies and tax credits. The federal government counters that under the explicit terms of the statute, a federally run exchange is a state exchange.

At the White House on Friday, spokesman Josh Earnest expressed confidence that the administration would prevail. "The congressional intent here is quite clear. They intended for customers who signed up for health insurance through the marketplace to be eligible to receive assistance from the government to make their premiums more affordable. That is, after all, one of the principal goals of the Affordable Care Act," said Earnest.

But the Supreme Court's decision to step into the case now is an ominous sign for the administration. The court rarely intervenes in a controversy when there is no disagreement in the lower courts, the exception being if a federal law or regulation has been struck down. And so far, only one federal appeals court has ruled on this challenge, dismissing it and upholding the current system. A 2-to-1 decision by an appeals court panel in Washington, D.C., was voided when the full 11-judge court voted to review the case. Oral arguments in that case were set for December.

Nonetheless, Obamacare opponents have pressed the Supreme Court to step in now.

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Supreme Court Agrees To Hear New Health Law Challenge