The Affordable Care Act will be staying well past Obama’s 2017 White House exit.
In a 6 to 3 ruling, Thursday, June 25, the Supreme Court of the United States (U.S.) ruled that it is legal to use subsidies to purchase health insurance on the federally facilitated marketplace. The decision made in the King v. Burwell case means that tax credits will continue to be valid in the 34 Federal Facilitated Marketplace (FFM) states. By upholding the initial 2012 Affordable Care Act (ACA)/Obamacare rules, millions of uninsured individuals will continue to be able to obtain federal premium subsidies to purchase health insurance in the federal health care exchange.
U.S. President Barak Obama delivered his remarks stating that the ruling of the Supreme Court will uphold the availability of tax subsidies nationwide, not just in the states that have their own exchange. He further stated that this ruling is critical in the implementation of ACA/Obamacare. Moving forward, this ruling will improve the affordability, access, and quality of health care and health care insurance obtained by Americans and U.S. residents alike.
Thursday’s ruling, is the second ACA/Obamacare provision ruling within the last three years by the Supreme Court. In 2012, the Supreme Court upheld the requirement that all individuals obtain health care insurance coverage or pay financial tax penalties. This tax penalty mandate went into effect January 1, 2014.