Health Care Reform Advisory |Supreme Court Upholds Subsidy Access in All States

ISSUED JUNE 25, 2015

The U.S. Supreme Court ruling in King v. Burwell, issued June 25, 2015, allows federal premium tax credits (subsidies) to continue for enrollees in BOTH federal and state-based health insurance exchanges.

This highly anticipated decision hinged on the statutory language of the Affordable Care Act (ACA), which is written to provide subsidies in exchanges “established by the state.” In this 6-3 decision, the Supreme Court follows the legislative intent within the broader context of the law; therefore, subsidy availability will continue in the 34 states utilizing federally-facilitated exchanges today.

An estimated 87 percent of those enrolled in the federal exchange ( receive subsidies, and subsidy access will continue for these Americans.

How does this Ruling Impact Employers, Employees and all Consumers?

Today’s ruling does not impact the legal status of the law and ACA implementation is unchanged.

Oswald Companies will continue to provide updates and regulatory guidance, as issued. Please contact your Oswald representative with any questions.