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Supreme Court Okays Health Law Subsidies

June 25, 2015


The US Supreme Court ruled today that the federal subsidies for health insurance in those states that have not created their own health exchanges are legal.


The 6-3 decision thus permits the federal government to continue to provide subsidies for low and middle income beneficiaries in the 34 states that instead use the federal government’s health exchange rather than one they created.


Health exchanges are the online marketplaces set up by the Affordable Care Act that permit individuals and families to shop for health insurance. The law authorized states to build their own exchanges, but it also created a federal exchange for beneficiaries in states that chose not to do so. Beneficiaries qualify for tax credits if their income falls below a certain level.


Plaintiffs argued that subsidies should not be available in states without their own exchanges.


Click to read more from Kaiser Health News.

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