people, circles, toys, plastic

Supreme Court ruling preserves health care subsidies

Jun 25 2015

The U.S. Supreme Court announced its long-anticipated decision in the King vs. Burwell case. The Court ruled in favor of Burwell, effectively preserving the availability of subsidies for health care coverage purchased on public exchanges, regardless of whether they are state-run or federally facilitated.

The King v. Burwell case challenged whether consumers in states where the federal government runs the health insurance marketplace (through are eligible for subsidies that help them afford insurance. The plaintiffs (King) argued that individuals eligible for subsidies can only get them through an exchange established by their state.

The Supreme Court decision affirms that consumers can depend on subsidies to purchase health care plans on the federally facilitated exchange.

Subsidies played a significant role in attracting the 6.4 million consumers who depended on subsidies to buy health care plans on the federally run health exchanges. This decision ensures that their health care benefits will not be disrupted.

We believe that reform of the Affordable Care Act is still needed. We urge Congress to focus on solutions that improve quality, transition our payment system to value-based care and broaden consumer choice.