Supreme Court Rules in Favor of Affordable Care Act's Federal Subsidies

On Thursday, the U.S. Supreme Court ruled in favor of Burwell in the case known as King v. Burwell.

At issue in King v. Burwell was a glitch in the wording of the Affordable Care Act (ACA) that might have been interpreted to mean that subsidies should not be available to customers of the federal Healthcare.gov insurance exchange. The majority of states opted not to establish a state insurance exchange, choosing instead to use the federally-facilitated Healthcare.gov; about six million consumers purchased subsidized insurance for 2015 through the federal exchange.

With Thursday’s announcement of the Supreme Court ruling in favor of Burwell, tax-credit subsidies offered to Americans who purchased health coverage on Healthcare.gov remain intact. Read more on the ruling here.

This ruling in favor of federal subsidies alone does not touch other provisions of the ACA, such as the individual mandate, employer mandate or ban on pre-existing condition exclusions. However, employers should keep an eye out for further changes to the ACA. While it is uncertain what may happen next, The Boon Group will continue to closely monitor any further developments related to the ACA or employee benefits.

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