Supreme Court upholds ACA subsidies
Posted On: 6-25-2015 | Posted By: Debbie Mathes, CPA
In a 6-3 decision handed down on June 25, the United States Supreme Court ruled that subsidies under the Patient Protection and Affordable Care Act will continue in a case that questioned the validity of health care premium subsidies granted in states that did not set up health care exchanges.
Plaintiffs in King v. Burwell had argued that language in the Affordable Care Act (ACA) only allowed the federal government to pay premium subsidies to those enrolled in health care exchanges set up by the states, and not to those enrolled in the federal exchange because their state failed to establish its own exchange. The Court’s ruling affirms the government’s position, so subsidies will continue to be paid to all qualified enrollees.
This ruling means the ACA implementation will remain unchanged, and businesses and individuals should continue to comply with its provisions.