The Affordable Care Act is heading back to the Supreme Court this Spring. The issue presented to the Supreme Court on this occasion is whether the IRS is authorized promulgate regulations to extend tax credit subsidies for coverage purchased through Federal Government’s Health Care Exchange.
The Affordable Care Act allows individuals who purchased health coverage through State-established Health Care Exchanges to subsidize a portion of that coverage through the form of refundable tax credits. The United States treasury directly pays each eligible taxpayer to offset the cost of the taxpayer’s insurance premium. However, a majority of States (including Florida) have elected not to establish their own Health Care Exchanges. In order to provide coverage to persons in these States, the Federal Government set up its own Health Care Exchange marketplace. Continue reading