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Legislative Process Keyed to Bressman, 4th Ed.
King v. Burwell
Citation:
135 S. Ct. 2480 (2015)Facts
The Patient Protection and Affordable Care Act (ACA) established three major reforms to expand health insurance coverage: (1) guaranteed issue and community rating requirements preventing insurers from denying coverage or charging higher premiums based on health status; (2) an individual mandate requiring individuals to maintain insurance coverage or make a payment to the IRS; and (3) tax credits to make insurance more affordable for individuals with incomes between 100% and 400% of the federal poverty line. The Act required each state to establish an “Exchange” where people could shop for insurance, but provided that if a state chose not to establish an Exchange, the Secretary of Health and Human Services would “establish and operate such Exchange within the State.” The petitioners lived in Virginia, which had a federally-established Exchange. They challenged an IRS rule that made tax credits available on both state and federal Exchanges, arguing that the statutory language authorizing tax credits for insurance purchased on “an Exchange established by the State” precluded tax credits on federal Exchanges.
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