Supreme Court Rules on 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 that the language of the Affordable Care Act authorized subsidies only in states that had set up their own Exchanges. With this ruling, the Court determined that Congress intended for the subsidies to be available to everyone.

If the Court had struck down the subsidies in federal Exchanges, the impact would have been significant for employers and individuals. However, this ruling confirms the current interpretation of the Affordable Care Act’s provisions, including the subsidies, the individual mandate and the employer mandate. As a result, the ACA’s subsidies remain available for eligible individuals in all states, including those with federal Exchanges.

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