Court upholds health care subsidies in states with federal exchanges

Categories: Latest News

June 25, 2015

U.S. President Barack Obama, with Vice President Joe Biden  next to him, delivers remarks June 25 after the Supreme Court ruled 6-3 to uphold tax subsidies for participants in health exchanges run by the federal government in states that refused to create them. Obama and Biden are seen in the Rose Garden at the White House in Washington. (CNS photo/Gary Cameron, Reuters) See SCOTUS-ACA (UPDATED) and ACA-REACT June 25, 2015.

U.S. President Barack Obama, with Vice President Joe Biden next to him, delivers remarks June 25 after the Supreme Court ruled 6-3 to uphold tax subsidies for participants in health exchanges run by the federal government in states that refused to create them. Obama and Biden are seen in the Rose Garden at the White House in Washington. (CNS photo/Gary Cameron, Reuters)

WASHINGTON (CNS) — Writing that “Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them,” a 6-3 majority of the Supreme Court June 25 upheld tax subsidies for participants in health care exchanges run by the federal government in states that refused to create them.

In the majority opinion, Chief Justice John Roberts disentangled what he said was “more than a few examples of inartful drafting” in how the 2010 law was written that contributed to the interpretation that federal subsidies for people with lower income should only be available to residents of states that created their own health care exchanges.

The subsidies were challenged by four residents of Virginia — which has a federal exchange — who don’t want to purchase health insurance and argued that the tax credits they would receive to do so are not what the law intended. Without the subsidies, their income level would allow them to be exempt from the requirement of the ACA to purchase insurance.

Read more in The Visitor…