Updated 6/25/2015 – Update on King v. Burwell

On 6/25/2015, the Supreme Court released the long awaited decision on King v. Burwell, upholding the availability of federal subsidies and tax credits for individuals purchasing insurance on federal Marketplaces. The court concluded that the language and context of the Patient Protection and Affordable Care Act (PPACA) compels the interpretation that subsidies and tax credits are available not only to individuals who purchase insurance on the state Marketplace, but also on the federal Marketplace. Pursuant to the PPACA, this decision applies to all 50 states in the nation.



\Updated 3/10/2015 – Update on King v. Burwell

Earlier this month, the Supreme Court heard oral argument in King v. Burwell. Oral arguments spanned over three days and it appears that the Supreme Court is divided on the issue, with no clear clues on how the Court will rule. The Court’s decision is expected to be released by late June or early July of this year.

For further reading, you can access a copy of the transcript here.



What is the significance of the King v. Burwell case? The outcome of this case will determine if individuals purchasing insurance in the federal healthcare marketplaces will be eligible to receive subsidies and tax credits.

When will a decision be reached? The Supreme Court has set a hearing date of 3/4/2015, and a decision is expected some time in June of this year.

What do I need to do? No action is needed on your part right now.  We will keep you updated on the case as it develops.



More Information

The Supreme Court has decided to hear the case of King v. Burwell, which centers on the question of whether individuals purchasing insurance on federal Marketplaces are eligible to receive subsidies and tax credits. If the Supreme Court finds that subsidies are not available for federal exchange states, employers in federal Marketplace states would be exempt from the Play or Pay penalties since these penalties are only triggered if a full-time employee obtains subsidized coverage on the Marketplace. The case will be heard on 3/4/2015 and a decision will likely be released some time in June 2015.

We will provide updates on the case, and information on how it may affect you, as it develops.


The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Bonnie Mangels – Bonnie is the Corporate Counsel and Senior Compliance Manager for Sequoia. When not inundated in paperwork and legal briefs, her interests include arts and crafts, bunnies, and the Bay Area.