Insight to Action

Benefits & Healthcare Update: Supreme Court Upholds Premium Subsidies on Federally Established Exchanges

26 June 2015

The U.S. Supreme Court handed down their opinion yesterday in the case King v. Burwell. The decision states that premium subsidies may continue to be offered to individuals purchasing health insurance on exchanges established by the federal government. Besides averting a dramatic increase in the premiums of millions of Americans, the decision impacts employers in states with federal exchanges because the employer mandate's penalties--triggered by employees receiving premium subsidies--will still apply.

This result upholds the status quo: the Affordable Care Act continues to operate as its drafters intended. Employers in states with federal exchanges must continue to plan and adapt for the employer mandate's requirements of offering affordable and valuable medical insurance to their full-time employees.

The decision is available online at: http://www.supremecourt.gov/opinions/14pdf/14-114_...

If you have any questions about the impact of King v. Burwell or how the employer mandate operates, please contact Ed Doherty at 646-839-8251 or via email at EDoherty@cammackhealth.com.