How King v. Burwell Could Affect Health Insurance Under Obamacare
05.27.2015
Learn what King v. Burwell, the Supreme Court case that threatens the provision of health care subsidies (premium tax credits), is all about. The Court will announce its decision in mid- to late-June. To hear from people whose access to health care is at risk, view shareable graphics, and more, visit our King v. Burwell resources page.
- What is King v. Burwell about?
- King v. Burwell and the Affordable Care Act: What’s at stake?
- What is the federal government’s response to King v. Burwell?
What is King v. Burwell about?
The case challenges the federal government’s provision of tax credits (also known as “subsidies”) to help low- and middle-income people afford their health insurance premiums in states that didn’t set up their own health insurance marketplace (exchange). Consequently, it threatens the health coverage of millions of people who rely on premium tax credits.
The plaintiffs claim that the ACA allows residents to receive premium tax credits only in states that run their own health insurance marketplaces directly, rather than the federally facilitated marketplaces operated by many states. The plaintiffs base their argument on a clause in the ACA that says that tax credits will be available in marketplaces “established by the state.”
They assert that Congress never meant to extend premium tax credits to consumers in states that didn’t set up their own marketplaces directly. They argue that Congress intended to induce states to run their marketplaces by withholding premium tax credits from residents of states that opted not to do so.