U.S. Supreme Court Upholds Subsidies and Employer Mandate

Posted by: : Ivy AuvanPosted on: June 25, 2015 U.S. Supreme Court Upholds Subsidies and Employer Mandate

Today’s U.S. Supreme Court decision to allow subsidies for lower-income taxpayers buying health insurance through the federal marketplace also reinforces the enforceability of the employer mandate, said Lockton, the world’s largest privately held independent insurance broker.

In an important Alert, Lockton explains the implications of the Supreme Court ruling.

“The Court has once again rescued a significant piece of the Affordable Care Act (ACA),” said Mark Holloway, Senior Vice President, Director, Compliance Services, Lockton Benefit Group. “Today’s decision removes the uncertainty surrounding the fate of the employer mandate in the 34 states depending on the federally-operated marketplace for employers doing business in one or more of those states. The employer mandate is alive and well.”

But even with this latest decision, Holloway said litigation will continue for the foreseeable future. For example, the U.S. House of Representatives is suing the President in federal court, asserting the delay of the employer mandate from 2014 to 2015 was an abuse of executive power under the U.S. Constitution.

In addition, there is another subsidy-related lawsuit working its way through a federal court. In that case, plaintiffs are challenging federal payments made to insurers to shrink deductibles and other cost-sharing aspects of health insurance coverage sold through the online public marketplaces. The plaintiffs argue that Congress did not appropriate money for those payments.

“Regardless of what comes next, this decision impacts many of our 41,000 clients who have been working hard over the last five years to meet the health reform law’s employer mandate,” said Bob Reiff, President – Lockton Benefit Group. “As always, we will continue to partner with our clients to navigate the dynamic, twisting and turning road that is the Affordable Care Act.”

For more information and Lockton’s full reaction to the Court’s decision, please read the Alert.

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