Supreme Court Decision in King v. Burwell (Availability of subsidies on the federal marketplaces)

On Thursday, June 25th the Supreme Court upheld the availability of subsidies for the purchase of health insurance coverage on the Affordable Care Act’s federally-facilitated marketplaces (exchanges). Subsidies will remain available for individuals enrolled through the federal marketplace.

As background, the Supreme Court decided to hear a case (King v. Burwell, 14-114) in 2014 that challenged the availability of subsidies for the purchase of health insurance coverage on the Affordable Care Act’s (ACA) federally-facilitated marketplaces (exchanges). Currently IRS regulations allow health insurance tax credits under the ACA for consumers in all states. The challengers based their argument on the language of the ACA, which states that subsidies will be offered through a health care exchange “established by the state.” Sixteen states have built such marketplaces, with the rest relying on the federal marketplaces.