WASHINGTON – The Supreme Court announced late last week that it will hear a case challenging the distribution of tax subsidies in Obamacare. At issue is whether subsidies to individuals can be paid on all healthcare exchanges or only on “exchanges established by a State.” The IRS had issued a rule saying all exchanges but those challenging the rule say that the statute is clear that subsidies can be paid only on exchanges established by a state.

The court’s decision to hear the case promises to place the president’s health care law back at the center of the court’s spotlight and could determine a significant part of the Affordable Care Act's future.

The plaintiffs in the case, King v. Burwell, argue that the residents of states that did not set up their own health insurance exchanges cannot get the subsidies.

The move was a huge surprise since only one appeals court has ruled against the Obama administration on the issue. Since then, the same panel has said that it would re-hear the case in December. A Supreme Court ruling against the Obama administration would severely limit the reach of the subsidies, which is considered one of the law's key benefits. This also comes as the newly Republican-controlled congress is renewing calls to repeal major sections or the entire law.