Last Thursday, President Barack Obama announced that the Affordable Care Act is "here to stay." The U.S. Supreme Court ruled that the Affordable Care Act's premium tax credits are available to eligible individuals who enroll in qualified health plans through any Health Insurance Exchange (Marketplace), regardless of whether it is a state-based Exchange or a federally-facilitated Exchange. This is important because this means that federal subsidies - which help 6.4 million people pay for their Obamacare health plans - are legal under the Affordable Care Act.
The ruling comes in response to conflicting July 2014 court rulings in the District of Columbia Circuit Court of Appeals and the Fourth Circuit Court of Appeals, after each court considered whether the premium tax credits are limited under the law only to individuals who enroll in qualified health plans through state-based Health Insurance Exchanges. The DC Circuit ruled that the tax credits are limited to individuals who enroll in state-based Exchanges, while the Fourth Circuit upheld IRS rules that also include individuals enrolled in federally-facilitated Exchanges.
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