Another controversial part of the Affordable Care Act (Obamacare) will be under review by the Supreme Court. They will be looking at the tax credits that subsidize health coverage purchased on federal exchanges. This is a central part of the law and if it rejected could cause problems for millions of American’s coverage.
Subsidies are key to the Affordable Care Act’s success. About 87% of those who signed up for Obamacare plans on HealthCare.gov received them.
The subsidies limit the cost of coverage to no more than 9.5% of one’s income for those who qualify. Those eligible for subsidies paid an average of $82 a month, compared to $346 without assistance, the administration said this summer.
Only 14 states and the District of Columbia set up their own exchanges, meaning that the 4.7 million who signed up for subsidized health coverage through HealthCare.gov could be affected.
For now, the law remains unchanged and the subsidized policies are unaffected until the legal case plays out. The Justice Department will defend the law when the case is briefed and argued in coming months.
The subsidies case is King v. Burwell (14-114).
