Earlier today, the United States Supreme Court released its opinion in King v. Burwell, ruling that subsidies under the Affordable Care Act (ACA) could be issued by all health care exchanges, including not only state-based exchanges but also federally facilitated exchanges. Today’s opinion maintains the status quo. 

Reasonable minds can (and certainly will) disagree about the decision and the rationale used. For our employer clients, however, our messages are simple: 

  • The ACA is not going away. Your planning and analyses have not been in vain.
  • Determining the "best" health coverage options for your company has never been a one-and-done project, though the ACA does make it more complicated. During these first few years of the employer penalty, it is important to allocate sufficient time to gather data, consult stakeholders, make decisions, and monitor progress.
  • Large employers and employers with self-funded plans are required to comply with the ACA’s reporting requirements. Individual statements to employees will be due February 1, 2016. If your company does not yet have an action plan for ACA reporting, we urge you to focus on this issue as soon as possible.