An appeals court ruling that would exempt Alabama and other states from the Affordable Care Act’s exchange-based subsidies, taxes, and penalties is a “victory over Obamacare,” Attorney General Luther Strange said Tuesday in Moody.

Earlier in the day, the U.S. Court of Appeals for the District of Columbia ruled against federal subsidies people who signed up for health coverage, a key component of the federal health care law.  The decision opens the way for a possible Supreme Court challenge of Obamacare, a possibility that was increased later Tuesday when the Fourth Circuit Court in Virginia ruled in favor of the subsidies.

“This lawsuit has the potential to cripple Obamacare and free millions of Americans from the individual mandate,” said Strange, who was in St. Clair County this week to meet with local Republican supporters. “The court’s decision was also a stinging rebuke to the Obama Administration for making up the law as it goes along, instead of following the law as it was passed by Congress.”

Alabama joined Georgia, South Carolina, West Virginia, Oklahoma, and Nebraska brief to the Washington, D.C., appeals court arguing that the Affordable Care Act allows the IRS to distribute subsidies only for insurance purchased on state exchanges, not federal exchanges.  Some states, including Alabama, did not set up state exchanges. 

If Tuesday’s initial ruling stands, it means that Obamacare’s exchange-based subsidies, taxes, and penalties will not be enforceable in states that did not set up a state exchange, the attorney general said. “I am proud to have joined my fellow Republican attorneys general in filing a brief in support of this result.”

Strange, who has served as attorney general since 2011, faces general election opposition from Montgomery attorney and state House Minority Whip Joe Hubbard. 

“St. Clair County’s support is critical to me,” Strange said to supporters.  “My grandfather’s farm was here in Moody, and this county is special to me.  If I don’t do well in St. Clair County, I won’t do well anywhere else.”