Millions Can Keep Health Coverage Because of the Supreme Court’s Decision in King v. Burwell

Yesterday’s U.S. Supreme Court’s decision in King v. Burwell, which upheld tax credits for 6.4 million Americans, is a big story. It has implications for health care policy, tax policy, even presidential politics. But the most important story is about the individuals who count on the Affordable Care Act (ACA) for medical and financial security.

Take John, a 61-year-old industrial electrician, who was recently laid off from his job due to early onset Parkinson’s disease. His family now survives on income from retirement savings of about $30,000 a year. Although he always had health insurance through his job, John is now unable to work, and he and his wife obtain health coverage through the federal Marketplace. John receives a tax credit of $800 a month, leaving him with a monthly health insurance premium of $240. His health plan provides good coverage, which is important to John, because his treatment for Parkinson’s disease without health insurance would be extremely expensive.

The ACA is working for John and people like him. In fact, more than 10 million people now have quality, affordable health coverage through the Marketplaces who didn’t have it before. That includes 294,000 people who selected a plan and have paid their premiums in the Illinois Marketplace. Moreover, fewer Americans are uninsured: Gallup polls show a national uninsured rate of 11.9%, which is a 5.3% drop from 2013.

Because of the Supreme Court’s decision today in King, John and others like him can keep the tax credits that subsidize their health insurance coverage. In Illinois—one of the 34 states impacted by this decision—over 232,000 Marketplace enrollees (almost 80% of all enrollees) will now be able to keep their premium tax credits. Since each Illinois Marketplace enrollee receives an average tax credit of $211 per month, that totals $49 million in tax credits in the state.

This decision is a significant victory for millions of Americans working hard to join or remain in the middle class. Most of those who use the premium tax credits are in working families, either employees or entrepreneurs. Now, with tax credits intact, these families, many of whom earn less than $25,000, can continue to access the health care services that they need. In addition, this decision ensures a more certain future for the Affordable Care Act, which has brought health care coverage to millions of previously uninsured Americans. 

The Shriver Center will continue to monitor the impact of the Supreme Court's decision in King and will continue to work with our state and federal partners to advocate for high-quality and affordable healthcare for all Americans. We will be hosting a webinar with EverThrive Illinois on June 30 at 2:00 pm to discuss the implications of momentous decision. Please join us then!

 

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