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U.S. Supreme Court to Hear Case Challenging Subsidies Offered through the Affordable Care Act

The Supreme Court has decided to hear a case (King v. Burwell, 14-114) that challenges 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.

This case is one of four cases that have been filed charging that subsidies can only be offered in the health care marketplaces run by 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.

Oral arguments will be heard on Wednesday, March 4, with a decision expected in late June or early July.