Human Resources
U.S. Supreme Court Will Hear Case on Legality of Health Law Subsidies

U.S. Supreme Court Will Hear Case on Legality of Health Law Subsidies


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On November 7, 2014, the U.S. Supreme Court agreed to decide whether consumers that purchase health care policies from a federal health care Exchange are entitled to receive a federal subsidy.

The Supreme Court granted certiorari in the case of King v. Burwell, in which the Fourth Circuit Court of Appeals upheld an Internal Revenue Service (IRS) regulation that provides that federal subsidies are permitted to be paid regardless of whether the policy is purchased in a state Exchange or a federal Exchange. Challengers to the law argue that the IRS exceeded its authority and that the Affordable Care Act only permits subsidies to be paid for a policy purchased from a state Exchange.

Resources

The Pay.gov website and announcement is available at: https://www.pay.gov/public/home

The CMS Alert on the extension is available at: http://www.cms.gov/CCIIO/Programs-and-Initiatives/Premium-Stabilization-Programs/The-Transitional-Reinsurance-Program/Reinsurance-Contributions.html

Aon Hewitt’s Regulatory Guidance Under the Affordable Care Act page, which provides links to Aon Hewitt bulletins on Affordable Care Act guidance and regulations, is available at: http://www.aon.com/human-capital-consulting/thought-leadership/leg_updates/healthcare/index_regulatory_guidance_affordable_care.jsp