Health: Supreme Court Approves Healthcare Subsidies

On June 25, 2015, Supreme Court ruled in favor of Obama’s Affordable Care Act, which allows the federal government to offer nationwide tax subsidies to help low and middle class individuals buy health insurance. Marketplaces/exchanges created by the Affordable Care Act allow people with no health insurance to buy individual health plans. These exchanges were already in place: some states created their own exchanges while nearly 36 states allowed the federal government to run their exchanges. Of the individuals using the exchanges, nearly 85 percent qualified for aid based on their income. The approved law allows the federal government to give these individuals the financial aid they need.

This is the second time in three years that the law passed though the Supreme Court. This time around, they discussed a sentence in the law “that seems to say the subsidies are available only to people buying insurance on ‘an exchange established by the state.’” Majority decided that, by reading the sentence in context rather than in isolation, it becomes apparent that this is not the correct interpretation. According to lawyers for the Obama administration, the proposed interpretation would have affected 6 million people and created chaos in the insurance markets.

Contributor: Cristina Herrera

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