The United States Supreme Court, in a 6-3 decision, has held that the Affordable Care Act, or ACA, authorizes federal tax credits for eligible Americans to help them purchase health insurance. The ruling upholds the controversial healthcare law, commonly known as “Obamacare.”
The case at the core of decision centered on federal exchanges, which are marketplaces created by the ACA that allow those without insurance to shop for individual health plans. Some states set up their own exchanges, while other states allowed the federal government to run them. A question then arose as to whether the ACA’s reforms applied equally in each state regardless of who was running the exchange. Specifically, the question presented to the Supreme Court was “whether the Act’s tax credits are available in states that have a federal exchange rather than a state exchange.” The Court held that they were.