King v. Burwell: The ACA Survives Second Supreme Court Challenge

The National The Affordable Care Act (“ACA”) survived its second major legal challenge on June 25, 2015, when the United States Supreme Court ruled in King v. Burwell that federal tax subsidies designed to make individual health insurance affordable can continue in states that have not established their own insurance “exchange.” An opposite ruling would have fundamentally disrupted the ACA’s purpose and rendered much of the law ineffective. In 2012, the Supreme Court upheld the ACA’s individual mandate provisions. The two most controversial components of the ACA have now survived Supreme Court scrutiny.

Important Components of the ACA –

Congress designed the ACA to stop a long-running insurance “death spiral” in which many individuals would not purchase health insurance until they needed it. As fewer healthy people were purchasing health insurance, premiums continued to rise as the insured population became more unhealthy and the cost of claims increased. The increasing premiums for health insurance made it even more difficult and economically undesirable to obtain. The ACA has three key provisions designed to remedy this situation…

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