Supreme Court Rules in Favor of Affordable Care Act’s Federal Subsidies

On Thursday, the U.S. Supreme Court ruled in favor of Burwell in the case known as King v. Burwell.

At issue in King v. Burwell was a glitch in the wording of the Affordable Care Act (ACA) that might have been interpreted to mean that subsidies should not be available to customers of the federal Healthcare.gov insurance exchange. The majority of states opted not to establish a state insurance exchange, choosing instead to use the federally-facilitated Healthcare.gov; about six million consumers purchased subsidized insurance for 2015 through the federal exchange.

With Thursday’s announcement of the Supreme Court ruling in favor of Burwell, tax-credit subsidies offered to Americans who purchased health coverage on Healthcare.gov remain intact. Read more on the ruling here.

This ruling in favor of federal subsidies alone does not touch other provisions of the ACA, such as the individual mandate, employer mandate or ban on pre-existing condition exclusions. However, employers should keep an eye out for further changes to the ACA. While it is uncertain what may happen next, The Boon Group will continue to closely monitor any further developments related to the ACA or employee benefits.

About The Boon Group

The Boon Group® is a full service employee benefits company specializing in the design, implementation and administration of cost-effective fringe benefit plans for federal, state and local government contractors. Since 1982, The Boon Group has developed a partnership philosophy that expands beyond the products and services we offer. We stand with the employers and employees who, just like all who work at The Boon Group, are faced with the daunting task of navigating the U.S. healthcare system. Together, we can find a better way for all Americans to access healthcare. The Boon Group, Inc. is the parent holding company of The Boon Insurance Agency, Inc., Boon Administrative Services, Inc. (formerly named CEBA), Boon Insurance Management Services, L.P., Health & Welfare Benefit Systems, Inc. and Boon Investment Group, Inc. The Boon Group was formed to support and strengthen the position of these companies as a wholesaler of exclusive products and services. www.boongroup.com
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