The Supreme Court Upholds Health Care Subsidies

The Supreme Court upholds that health care subsidies in state exchanges will continue.

The 6-3 ruling stopped a challenge that would have eliminated subsidies in the state exchanges (34 states). The Court ruled that the Affordable Care Act (ACA) permits the Internal Revenue Service (IRS) to continue to provide tax credits for health insurance purchased through a federal Exchange (Marketplace). 

The Court’s decision supports the federal government’s position that the IRS can provide these credits, even if the recipients reside in one of the 34 states that currently do not have a state Exchange. 

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