SCOTUS will hear ACA subsidy case

The U.S. Supreme Court agreed to hear King v. Burwell this term to decide whether the Internal Revenue Service can extend tax credits to people who purchase health insurance through federally-run exchanges. At issue is language in the Affordable Care Act (ACA) referring to exchanges "established by the State." The plaintiffs argue that the wording restricts tax credits to those who purchase through state-run exchanges. CMS's website lists 19 state exchanges.

Subsidies are an integral part of the ACA. For plan year 2014, more than 5.4 million people have selected a plan on federal exchanges, with 87% receiving tax credits, according to a report issued by HHS in June (see BioCentury Extra, July 22). ...