ACA Federal Subsidies Upheld by Supreme Court: Employment Law Manual Updated

Author: Tracy Morley, XpertHR Legal Editor

On June 25, the Supreme Court ruled that individuals who purchase health insurance on a federal exchange are eligible to receive subsidies under the Affordable Care Act (ACA). In King v. Burwell, it held that the tax credits are available to individuals who purchase insurance on any exchange created under the ACA and are not limited to individuals in states with a state-run exchange. Removing the federal subsidies would create a "calamitous result that Congress plainly meant to avoid" in creating the ACA, wrote the court.

In light of this development, the Health Care Benefits: Federal section of the Employment Law Manual has been updated.