ACA Subsidies Case Heard

Earlier this month, the U.S. Supreme Court decided to hear King v. Burwell, a case involving a challenge to the IRS’s interpretation of insurance subsidies under the Affordable Care Act. The issue is whether subsidies are available to those in states that have not created an insurance exchange. The IRS took the position that subsidies are available through either state or federal exchanges. If the Supreme Court strikes down the IRS’s interpretation, arguably, individuals and employers in states without an exchange will not be subject to the ACA’s mandate. However, employers and individuals in states that have an exchange (like CA and NY) will still be subject to the ACA’s mandate.

The fact that the Supreme Court decided to hear the King case came as a surprise as it generally does not do so unless the Courts of Appeals have issued conflicting decisions. The D.C. Circuit has agreed to re-hear a case raising the same question, so there is not currently a clear split. The case will be heard before the end of the Supreme Court’s term in June 2015. The effect of its decision on the ACA will not be clear until the Court has made its ruling.

Below is a depiction of some of the states that have made their own exchanges. More information about the ACA can be found on Media Service’s website.

Map of U.S. Exchanges ACA

Advertisements

About Media Services

Media Services is a leading provider of entertainment payroll, production accounting and residuals. Our proprietary software line, Showbiz Software, is considered the industry standard for timecard calculation.
This entry was posted in Affordable Care Act, Film, Film Payroll, Uncategorized and tagged , , , . Bookmark the permalink.

Got something to say about it?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s