Medical Billing Blog

Supreme Court to Hear King v. Burwell Arguments on March 4th

Posted by Scott Shatzman on Wed, Jan, 14, 2015 @ 12:01 PM

The US Supreme Court has scheduled oral arguments for King v. Burwell for March 4, 2015. This case will determine whether people purchasing health insurance via the Federal Health Exchange (healthcare.gov) are eligible to receive Federal subsidies towards their monthly premiums.  

 

Plaintiffs in this case argue that the clear language of the ACA states that federal subsidies are only available to individuals purchasing health insurance through an Exchange operated by the state.  The federal government argues that in this case, the word “state” should be broadly interpreted and include Exchanges operated by the federal government.  

 

The federal government currently operates the Exchanges for 37 states.  According to the latest data, approximately 6.4 million Americans purchased health insurance through a federally operated Exchange as of mid-December.  Thus far for 2015 plan year, approximately 87% of those purchasing insurance through the Federal Exchange qualify for a tax subsidy.  This compares to 80% receiving subsidies in 2014.  Given that there are still six weeks of open enrollment remaining, it is not clear the early trend will continue.  

 

If the Supreme Court rules in favor of the Plaintiffs, these subsidies would be invalidated.  

 

Though the oral arguments will be made on March 4th, a decision is not expected until June or July.