June 25, 2015

United States Supreme Court Holds Affordable Care Act Subsidies Available in all States

On June 25, 2015, the United States Supreme Court held in a six-three decision that the Affordable Care Act premium assistance tax credits (also called “subsidies”) that assist individuals to purchase health insurance on an Exchange, are available in all states, regardless of whether the Exchange is operated by the state or the federal government. The Court found that the interpretation that subsidies were only available in State Exchanges would “destabilize the individual insurance market in any State with a Federal Exchange, and likely create the very ‘death spirals’ that Congress designed the Act to avoid.” The majority opinion was written by Chief Justice Roberts, and joined by Justices Kennedy, Ginsberg, Breyer, Sotomayor and Kagan. Justice Scalia, joined by justices Thomas and Alito, published a strong dissent to the decision.

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