Insurance News: ACA Exchange Subsidies
Today, the Supreme Court issued its opinion in King v. Burwell, the case challenging the availability of subsidies in health insurance Exchanges run by the federal government. In a 6-3 decision, the Court upheld the availability of subsidies in both state and federal Exchanges. The Court rejected the argument the language of the Affordable Care Act authorized subsidies only in states that had set up their own Exchanges. The Court determined with this ruling that Congress intended for the subsidies to be available to everyone.
The impact would have been significant for employers and individuals if the Court had struck down the subsidies in federal Exchanges. This ruling confirms the current interpretation of the Affordable Care Act’s provisions, including the subsidies, the individual mandate and the employer mandate. The ACA’s subsidies remain available for eligible individuals in all states, including those with federal Exchanges.