The U.S. Supreme Court has saved ObamaCare from its opponents for the second time in three years. On Thursday it issued a landmark ruling when it rejected King v. Burwell, a major lawsuit against the Affordable Care Act.
The plaintiffs raised the question of whether the IRS is allowed to give tax credits to people in states with health insurance exchanges established by the Federal government, instead of the state.
Why was this an issue? Section B of the IRS Code enacted as a part of ObamaCare states that tax credits are provided for health insurance coverage purchased through an “Exchange established by the State."
The supporters of this lawsuit based most of their case against ObamaCare on the phrase -- "an exchange established by the state”, stating that it meant that tax credits for buying insurance should only be available in states operating their own health insurance exchange marketplaces, without the administrative work being performed by the federal government.
Had the Supreme Court ruled in favor of King, over 6 million people in the following 34 states would have been affected by this decision:
The Urban Institute, in a report prepared for the
Due to this landmark ruling, health insurance coverage is here to stay – at least until a new president takes office.