Supreme Court Upholds Health Insurance Subsidy

SALT LAKE CITY, June 25, 2015 /PRNewswire-USNewswire/ -- The Supreme Court of the United States today announced their opinion in the King V. Burwell case.  With a 6 to 3 majority in favor of the defendant, health insurance subsidies have been upheld. The majority opinion was written by Chief Justice Roberts.

The case focused on whether or not the federal government could distribute advanced premium tax credits, or subsidies, through the federal exchange Healthcare.gov. States that had set up their own exchanges would not be affected by the decision.

King had argued that the Federal government had overstepped their rights by allowing subsidies through the federal exchange. This argument stemmed from a seven word phrase in section 1401 of the ACA. It states "through an exchange established by the state."

The Supreme Court found that the subsidies were legally sound citing the phrase being taken out of context, and the argument was unpersuasive.

Utah, being one of the 37 states that did not set up a health insurance exchange had a lot riding on today's decision. Over 100 thousand Utah residents depend on the subsidy to maintain health coverage.  Shaun Greene, COO of Arches Health Plan was relieved by today's ruling. "We're very excited about the outcome today. If things had gone differently today, many of our members wouldn't be able to afford their health insurance. It would put our members in a very difficult situation."

"As far as our members are concerned, they can carry on as usual. There will be no effect to their premiums or coverage," said Aaron Quarnberg, VP of Member Services. "We hope today's decision puts an end to attempts to rescind important provisions of the Affordable Care Act."

About Arches Health Plan:

Arches Health Plan is a member-governed, non-profit health insurance option for Utah residents. The company offers individuals and groups high-quality care with a focus on developing cost transparency, increased efficiency, and its unique member-governance structure. Plan members may directly participate by electing the board of directors, become board members themselves and provide input for quality improvement, cost management, and service delivery. Arches plans are marketed through ArchesHealth.org, appointed brokers, the Federal Marketplace Exchange, and Utah's Shop Exchange Avenue H.

SOURCE Arches Health Plan