On June 18th, the Supreme Court upheld a major provision of the Affordable Care Act, which means a large victory for the Obama administration. The 6-3 decision marks the second time in four terms that the court has prevented the Affordable Care Act from a serious obstruction that could lead to the end of the program.
The key point in the King vs. Burwell case centered on whether the federal government had the ability to provide subsidies for low income Americans, to help them purchase health insurance. The challengers of the case argued that the way that the law is written does not allow for subsidized insurance in states in which the federal government had set up insurance exchanges. The challengers said that the law only allows for insurance subsidies in states that have set up their own exchange programs. The challenge to the law came out of a clause that the challengers argued meant that exchanges should be “established by the state,” but the members of Congress who took part in writing the law disputed characterization. Thirty four of the 50 states are currently relying on the federal marketplace.
If the court had decided to invalidate that specific portion of the law, Congress and President Obama would have to figure out a new way to help the 6 million people who are receiving subsidies cover the cost of their mandatory health insurance. The ruling makes sure that 6.4 million Americans will be able to keep their coverage.
For more information on the King vs. Burwell ruling, and for all of your health insurance needs, contact Sackett & Associates Insurance Services in Sonoma County, California. We will work with you to make sure that you have the right amount of coverage, no matter your income level.