In a decision rendered earlier today, the U.S. Supreme Court ruled that contested language in the Affordable Care Act allows the administration to offer premium subsidies in the form of tax credits to people in all states. This includes states that have not launched their own exchange.
Since tax credits for individuals and their families will be made available in states without state exchanges, employers with employees in those states will be subject to potential penalties under the employer mandate.
The ruling is certainly good news for several million individuals who could have lost their subsidy if the justices had ruled differently. The decision also will help everyone move forward in their efforts to comply with ACA restrictions and continue addressing the health care needs of their covered groups in the most cost effective manner.
We will follow up with more information on the premium tax credits as details become available.
If you have questions, please contact Diversified Group today.