The Supreme Court's decision to allow individuals to continue to receive premium tax credits for purchasing insurance on federal health care exchanges removes the last major challenge to the new reporting and excise tax requirements for employers under the Affordable Care Act (ACA) effective for 2015 and 2016.
The 6–3 decision in King v. Burwell, No. 14-114 (June 25, 2015), upholds IRS regulations that allow individuals to receive tax credit subsidies regardless of whether they purchase insurance on an exchange run by a state or the federal government. A group of individuals had argued that the plain language of the ACA provided tax credits only for individuals who purchase insurance on an exchange "established by the state."
For more information, see our Tax Flash.
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