When ObamaCare was being drafted, the Democrats wanted to make sure that all the states would buy into the program by creating their own insurance exchanges. To insure this, the law specifically said that if a state refused to setup their own exchange -- and Health and Human Services (HHS) was forced to provide one instead -- no one in that state would not be eligible for any federally subsidized insurance policies. What the President, the Democrats, and his HHS department didn't count on was the fact that 34 states refused to setup an exchange; meaning that millions wouldn't received subsidies and, as such, were probably not inclined to sign up for health insurance. This, in essence, would crush ObamaCare by not getting all the currently uninsured into the program.
Recognizing this flaw in his health law, Obama decided -- on his own and contrary to the law -- to extend subsidies to those enrollees in those states who didn't establish exchanges. That action by the President is now being challenged in the D.C. federal appellate court under the reference name Halbig vs. Sebelius. If successfully argued, it would mean that millions in 34 states would lose the subsidies that Obama promised; thus forcing mass cancellations. At the same time, it would post another court loss for the Administration.
Obamacare faces another court threat — and this one could be fatal: http://blogs.marketwatch.com/health-exchange/2014/07/07/obamacare-faces-another-court-threat-and-this-one-could-be-fatal/
Jonathan Turley: Get ready for an even bigger threat to Obamacare: http://www.latimes.com/opinion/op-ed/la-oe-0701-turley-obamacare-subsidy-halbig-20140701-story.html
The BIG threat to Obamacare (that you've never heard of): http://www.cnbc.com/id/101807858