In a 6-3 decision, the Supreme Court upheld Obamacare subsidies in about three dozen states, granting a major victory to the administration and supporters of the Affordable Care Act.
Chief Justice John Roberts wrote the majority opinion, in which he was joined by Anthony Kennedy and the Court’s four liberals.
Link: Read The Opinion
“Tax credits are available to individuals in States that have a Federal Exchange,” said Roberts.
The case of King v. Burwell was a significant challenge to the Affordable Care Act, or Obamacare. The Justices had to decide if language in the act blocked people from getting tax breaks on premiums sold by federally run health-care exchanges in 34 states. At issue was the intent of the phrase, “established by the State,” as eliminating tax breaks for these federally run programs.
“Petitioners’ plain-meaning arguments are strong, but the Act’s context and structure compel the conclusion that Section 36B allows tax credits for insurance purchased on any Exchange created under the Act. Those credits are necessary for the Federal Exchanges to function like their State Exchange counterparts, and to avoid the type of calamitous result that Congress plainly meant to avoid,” Roberts concluded.
“The Court holds that when the Patient Protection and Affordable Care Act says ‘Exchange established by the State’ it means ‘Exchange established by the State or the Federal Government.’ That is of course quite absurd, and the Court’s 21 pages of explanation make it no less so,” said Justice Antonin Scalia in his dissent.
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