By the end of the month, the U.S. Supreme Court will announce its third Affordable Care Act ruling on the legality of the association.
The Affordable Care Act ruling, which involves subsidies provided to individuals who purchase insurance via Healthcare.gov, has the potential to dramatically shake up the healthcare industry.
The lawsuit, King v. Burwell, specifically addresses whether the Internal Revenue Service (IRS) may permissibly promulgate regulations to extend tax credit subsidies to coverage purchased through exchanges established by the federal government under Section 1321 of the ACA. Under the statute, tax credits are available for health insurance that is purchased through an exchange “established by the State.” However, after most states failed to create their own marketplaces, the IRS extended the subsidies to insurance purchased through the federal government’s exchange, which is operated via Healthcare.gov. More than six million people have purchased insurance through the federal exchange – the majority of whom received the tax subsidy.
The federal courts that have addressed whether the subsidies are limited to state exchanges have reached differing conclusions. Rather then wait to let a circuit split emerge, the U.S. Supreme Court elected to intervene in the fate of the ACA. If the Court adopts a narrow interpretation of the statute, the whole healthcare scheme could be thrown into a tailspin. Citizens of states that failed to set up their own insurance marketplaces would not receive a tax subsidy and would also not be penalized for failing to obtain health insurance. Experts predict that if a significant number of Americans left the program, the cost of insurance would skyrocket and put it out of reach for many.
For businesses, the Supreme Court’s decision could also eviscerate the employer mandate. Under the ACA, businesses with 50 or more employees will be required to offer health insurance to full-time employees, or pay a penalty. If the Court strikes down the subsidies for the federal exchange, the penalty for failing to comply would not be triggered since it only applies when workers receive tax credits for health insurance purchased via one of the exchanges.
Crypto Investor Protection: SEC and CFTC Enforcement Trends
Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
