How did the Fourth Circuit rule in King v. Burwell before the Supreme Court heard the case?

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In July 2014, a three-judge panel of the United States Court of Appeals for the Fourth Circuit ruled unanimously (3–0) in favor of the government in King v. Burwell.1

The court held that the relevant text of the Patient Protection and Affordable Care Act was ambiguous regarding whether tax credits were restricted solely to state-run exchanges. Consequently, the panel concluded that the Internal Revenue Service had not exceeded its authority by issuing a rule that allowed for subsidies on both state and federal exchanges. Applying the principle of Chevron deference, the court determined that the IRS’s interpretation was a permissible construction of the statute.1