On November 7, the Supreme Court announced it would hear its second significant legal challenge to the Affordable Care Act (ACA). King v. Burwell, expected to be heard this spring and ruled on by the end of June, is a direct challenge to the subsidies enabling more low-and middle-income Americans to purchase health insurance. The case challenges an Internal Revenue Service (IRS) rule that authorizes the subsidies for those who enroll in the federally run insurance marketplace.
Under the current interpretation and IRS guidance, individuals are able to receive subsidies if they meet certain criteria based on household income, regardless of where they purchase their insurance coverage. However, should the Supreme Court rule against the Obama administration this summer, any individual who purchased coverage through the federally operated “HealthCare.gov” website would see their subsidies nullified. Currently, only 14 states, including California, Colorado, Connecticut, the District of Columbia, Hawaii, Idaho, Kentucky, Maryland, Massachusetts, Minnesota, New York, Rhode Island, Vermont and Washington, are operating their own state-run exchanges.
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