Affordable Care Act Status Quo Maintained
In a 6-3 decision on Thursday, June 25, 2015, the Supreme Court upheld the subsidies provision of the Affordable Care Act (ACA).
At issue in the case, King v. Burwell, was whether a specific phrase in the ACA limited the availability of subsidies to help individuals pay for health insurance coverage to state-established exchanges. The majority of states have exchanges established by the federal government rather than by the state. If the Supreme Court had ruled that the ACA prohibits subsidies in federally-established exchanges, the insurance coverage mandated by the ACA would have become unaffordable for many people in these states. Most commentators agreed that without the availability of subsidies in all exchanges, the stability of the ACA, which is built on the assumption of widespread participation, would have been threatened.
Although it removes some uncertainty regarding the ACA’s standing, the ruling allowing subsidies to continue will have little immediate impact on employers, as it maintains the ACA as it has been. Employers will need to continue to ensure that they are complying with all of the ACA’s requirements.
The Court’s opinion and Justice Scalia’s dissent can be read here.
As your payroll provider we provide multiple avenues to information, tools, and resources to keep you informed and prepared for all ACA regulations and requirements. Learn more about our ACA Compliance Services here.