In a 6-3 decision, the Supreme Court has ruled that the federal subsidies received by millions of Americans are legal.
The plaintiffs in the case of King v. Burwell argued that only insurance customers of exchanges run by a state should receive federal subsidies. The ruling upheld that credits shall be allowed in all 50 states, not only in the states that have established their own insurance exchanges.
The decision, written by Chief Justice John Roberts, noted that the ACA was passed “to improve health insurance markets, not to destroy them.”
Roberts wrote that “The combination of no tax credits and an ineffective coverage requirement could well push a State’s individual insurance market into a death spiral. It is implausible that Congress meant the Act to operate in this manner.”
Over 6 million people are using federal subsidies to offset the cost of insurance.