Thursday, March 12, 2015

3 things HR needs to about Supreme Court’s Obamacare case

By Jared Bilski



The Supreme Court has begun hearing arguments in King v. Burwell, a highly anticipated challenge to the cornerstone of the ACA, the federal subsidies. Here are three things HR needs to understand about the stakes in this case.

This entire case hinges on one phrase in the law, which says that subsidies — in the form of tax credits — would be offered in health insurance exchanges “established by the state.”
Despite this language, more than 30 states passed on setting up their own exchanges, so the feds stepped in to do so.

The original plaintiffs in the case, four Virginia residents, claim that the subsidies are illegal in the states where only federal exchanges have been established.

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