Regulatory Resources

Supreme Court Rules on Federal Tax Subsidies

In a widely anticipated ruling, the U.S. Supreme Court issued a decision upholding the payment of subsidies to consumers who obtain health insurance coverage through the federal marketplace or exchange.

On June 25, 2015, the Court ruled that federal tax subsidies should be provided to millions of lower- and middle-income Americans who purchased individual health insurance in approximately three dozen states through the federal marketplace or exchange.

The Obama administration had contended that the Patient Protection and Affordable Care Act (PPACA) extends the subsidies to Americans who purchase health insurance through the federal marketplace and through exchanges established by states. However, challengers maintained the law limits the subsidies to individuals who purchased health insurance only through a state exchange.

Please note: Luminare Health will continue to support its clients with products and services designed to meet the needs of the self-funded community, as well as with a continuous stream of information on PPACA, proposed and final regulations related to the law and updates surrounding healthcare reform, all of which is maintained on this Luminare Health website.