In King v. Burrell, the plaintiffs argued to the U.S. Supreme Court that the ACA statute allows subsidies towards the cost of medical coverage only for those individuals who “enroll in an exchange established by the state.” This position meant that subsidies would not be available in states that did not establish their own exchange, such as Virginia.

The U.S. Supreme Court has ruled against the plaintiffs. Therefore, individuals in all states will continue to be eligible for federal subsidies towards the cost of medical coverage, whether the coverage is purchased through a state exchange or the federal marketplace (healthcare.gov).

For employers, this ruling means that the Employer Shared Responsibility mandate to offer affordable coverage to employees remains intact, since subsidies are the trigger for potential employer penalties. Please contact your Keller account team with any questions.