ACA - Here to Stay: Supreme Court Upholds Federal Subsidies

By a 6-3 vote, the U.S. Supreme Court struck down a major challenge to the Affordable Care Act, ruling that subsidies may be made available via the federally run Healthcare.gov marketplace to individuals who live in states that do not set up their own health care exchanges.

The suit, King v. Burwell, challenged the validity of federal insurance subsidies and federally run exchanges claiming that the ACA specifically enables only state-run exchanges.

In its majority opinion, the Court stated, "Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them. If at all possible, we must interpret the Act in a way that is consistent with the former, and avoids the latter."

While the legality of federally run exchanges was the specific component of the ACA challenged by King v. Burwell, a successful outcome for the suit would have seriously encumbered, and likely demolished, all parts of its functioning.

This ruling is the second case in which the Supreme Court justices have decided in favor of the Affordable Care Act.

As always, do not hesitate to reach out with any questions or concerns.