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Singapore | 09/30/2015

Legal Articles

Supreme Court Upholds Availability of Tax Credits Under Affordable Care Act for Coverage Purchased Through Federal Exchange
The King opinion appears to save the Act from falling in upon itself, as the inability of individuals to receive tax credits in the 36 states that have not established their own exchanges would have significantly undermined the principles underlining the affordability of coverage under the Act. The U.S. Supreme Court issued the Obama administration a significant ruling in King v. Burwell by upholding the availability of tax credits under the Patient Protection and Affordable Care Act (the "Act") for coverage purchased by individuals through a federal exchange. At issue was a provision of the Act providing that the amount of the tax credit available depends in part on whether the taxpayer has enrolled in an insurance plan through "an Exchange established by the State." As the Act allows for exchanges to be created in each state, as well as by the federal government in states that choose not to establish their own exchange, the Internal Revenue Service issued a ruling in 2012 that made tax credits under the Act available for coverage purchased in both the state and federal exchanges.

United States | 09/24/2015


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