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Supreme Court ACA Subsidy Decision

The Supreme Court has spoken on the King v. Burwell case. In a 6-3 decision, the Supreme Court ruled the Affordable Care Act (ACA) federal tax credits for eligible United States citizens will remain in force.

In November 2014, the Supreme Court decided to hear the case challenging the legality of the ACA subsidies provided by the federal government.  The language issued when the ACA law passed specified subsidies were for state run exchanges.  Only 13 states operate their own exchange/marketplace.  The federal government runs the remainder of state exchanges.  An estimated 85% of those who purchased health insurance through healthcare.gov qualified for subsidies.

Today’s Court decision stopped the challenge that would have eliminated income-based subsidies for the Department of Health and Human Services’ predicted 6.4 million people.

For the ACA, it’s business as usual.  Open enrollment begins in November 1, 2015 for a January 1, 2016 effective date.  

To determine if you qualify for a subsidy: http://kff.org/interactive/subsidy-calculator/