High Court Rules Against Federal Subsidies and Shatters Obamacare Foundation Healthshare

High Court Ruling On Legality of Federal Subsidies Could Shatter Obamacare Foundation

high court rulingIn a stunning move, a federal appeals court ruled against premium tax credits obtained by individuals with coverage through the federal exchange. Shoddy wording in the Affordable Care Act (ACA) law has left the government open to lawsuits and interpretation by the courts.

According to the ACA, premium tax credits are to be granted for policies purchased through a “state exchange,” but no mention of premium tax credits being available for policies purchased through the “federal exchange.” Currently only 14 states run their own health insurance exchange, or marketplace. Therefore, the ruling could affect some 4.5 million Americans in 36 states who are receiving premium tax credits through the federal exchange.

Hours after the federal appeals court ruling, the Fourth Circuit Court of Appeals issued a separate ruling on a similar case that upheld the subsidies in their entirety.

While this court ruling is being appealed, several reports note that premium tax credits will remain in place for now. All states may be required to form their own health care exchange in order for premium tax credits to continue.

HSA for America will follow this situation closely and will be here to help our clients, regardless of the outcome.

What is your opinion on the federal appeals court ruling?

Wiley Long is President of HSA for America, and a passionate advocate for consumer-based solutions that will improve price transparency and lower health insurance and medical costs for people purchasing individual and family health insurance plans.

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