Affordable Care Act Status Quo Maintained
The subsidies provision of the Affordable Care Act (ACA) has been upheld by the Supreme Court. If the Court had ruled that the ACA prohibits subsidies in federally established exchanges, the insurance coverage mandated by the ACA would have become unaffordable for many people in the 34 states with federally run exchanges. Most commentators agreed that without the availability of subsidies in all exchanges, the stability of the ACA, which is built on the assumption of widespread participation, would have been threatened. Although it removes some uncertainty regarding the ACA’s standing, the ruling allowing subsidies to continue will have little immediate impact on employers, as it maintains the ACA as it has been.
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