King v. Burwell: The Facts and Implications

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Overview

This briefing will tell you what you need to know about a major Supreme Court challenge to the Affordable Care Act (ACA). The Court is expected to make a decision in June, and a ruling for the King petitioners could mean that individuals will no longer be able to receive subsidies to purchase health insurance through the federal marketplace. The federal government is operating insurance marketplaces in more than 30 states. Currently, subsidies to buy health insurance are available to individuals with incomes between 100 percent and 400 percent of the federal poverty level (i.e., those with annual incomes between $11,770 and $47,080).

 

If the challenge is successful, how will policymakers in Congress and at the state level respond? Will states rush to switch from federal to state marketplaces? What are the challenges? How many people would lose subsidies?

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