Supreme Court: Affordable Care Act Subsidies Still Legal in All States


In a 6-3 decision announced June 25, 2015, the U.S. Supreme Court ruled that federal healthcare subsidies under the Affordable Care Act are legal in all states, not just those with their own state-run insurance exchanges. The Supreme Court was deciding whether the tax credits, based on technical wording in the statute, could only go to people in the minority of states running their own online insurance marketplaces, where people compare policies and apply for coverage, or if subsidies were allowed in all states, including those states where the federal government runs the insurance marketplace. The ruling now makes certain that, absent legislation at the federal level, all individuals and employers will be subject to the Affordable Care Act. For example, the rules requiring Applicable Large Employers to offer affordable insurance to their full-time employees or face a fine will still be in play. LaPorte will be posting blog updates regarding compliance with the Affordable Care Act for large employers as well as other matters covered by the Affordable Care Act in the near future. Please feel free to contact Tax Services Director Micah Stewart, LLM in Taxation, at mstewart@laporte.com with any questions.

?>