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Supreme Court Votes in Favor of Federal Subsidies

Reading, Pa., June 25, 2015

The U.S. Supreme Court this morning voted 6-3 in favor of federal subsidies in the King v Burwell case. Essentially, the court’s majority has ruled that the federal government may provide nationwide tax subsidies to help poor and middle-class people buy health insurance. The case concerned a central part of the Affordable Care Act called health insurance marketplaces, also known as exchanges, to allow people who lack insurance to shop for individual health plans. Some states set up their own exchanges, but about three dozen allowed the federal government to step in to run them. Across the nation, about 85 percent of customers using the exchanges qualify for subsidies to help pay for coverage, based on their income. As St. Joseph works to lead the health care delivery transformation in order to better meet health needs and patient’s expectations, and address affordability of care, this ruling helps further our efforts.

Local media have contacted St. Joseph for comment on the ruling. The following statement was released and attributed to John R. Morahan, President and CEO:

St. Joseph is very pleased that the United States Supreme Court’s decision in King vs. Burwell has protected health insurance subsidies for the 6.4 million Americans and the nearly 480,000 Pennsylvanians among them who now can have access to health care coverage. This decision clearly supports the insurance exchanges which can now move expeditiously in providing people with insurance coverage and access to affordable healthcare. It’s satisfying to know that this issue is now resolved.


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