Health Care Subsidies Stabilized By U.S. Supreme Court: King v. Burwell
The U.S. Supreme Court has upheld health care subsidies for residents of all states, including those that rely on NY State of Health, the federal government’s health insurance exchange. The case at issue, King v. Burwell could have ended tax-credit subsidies for states that use the federal marketplace to facilitate the purchase of health insurance plans under Obamacare.
The 6-3 ruling means that almost 6.5 million Americans will continue to receive the financial assistance that helps them afford health insurance. This is good news for states that have their own health insurance exchanges because it will help to keep insurance costs and coverage steady, avoiding the "death spiral" that might have undermined state exchanges and destabilized the Affordable Care Act as a whole.