Today was a major decision day at the Supreme Court of the United States. Although the Court released only two opinions, both of today’s decisions carry enormous social import in Tennessee and throughout the nation. Each also represents a major victory for the Obama Administration, which secured wins in support of its health care and housing policies. The day’s two decisions were as follows:
1. King v. Burwell (6-3):
In 2010, Congress passed the Patient Protection and Affordable Care Act (“the ACA”), which has since been derided by many as “Obamacare.” Among other provisions of the law, the ACA sought to make insurance more affordable by giving refundable tax credits to individuals with household incomes that fell between 100 percent and 400 percent of the federal poverty line.
The ACA also required the creation of an “Exchange” in each state, which is essentially a marketplace that allows people to compare and purchase health insurance plans. The Act afforded each state the option of establishing its own Exchange, but it also provided that the federal government would establish “such Exchange” if a state chose not to establish its own exchange. At issue in this case, the ACA further provided that tax credits “shall be allowed” to any “applicable taxpayer,” but only if the taxpayer had enrolled in an insurance plan through “an Exchange established by the State[.]” Thus, the specific question presented in this case was whether tax credits would be available on all exchanges, or whether they would only apply to exchanges established by states.
Held: Tax credits are available to individuals in states that have a federal exchange. According to the Supreme Court: “Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them.” Consequently, based on the “fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme,” tax credits are available to individuals who purchase health insurance on either a federally-created or a state-created insurance exchange.
Special commentary and Tennessee connections: The importance of the Supreme Court’s decision in King v. Burwell cannot be overstated. In light of the continuing controversy surrounding the Affordable Care Act, this decision carries tremendous social and political significance. Consequently, Continue reading SCOTUS Decision Day Roundup: Supreme Court upholds ACA subsidies and approves disparate impact claims under the Fair Housing Act.