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Supreme Court Rules on King v. Burwell

Employee Benefits

Today the U.S. Supreme Court handed down the much-anticipated decision of the King v. Burwell case.

The key issue in this case was whether the Affordable Care Act (ACA) permits the federal government to provide subsidies to individuals in federally-facilitated marketplaces (this affects states that utilize the federal Marketplace instead of a state-based exchange).

There are 34 states, including Wisconsin, which currently utilize the federal Marketplace exchange rather than operate a state-based exchange.

In a 6-3 decision, the Court has ruled in favor of Burwell (the federal government). Simply put, this means that the subsidies are available regardless of which entity, the federal or state government, operates the Marketplace. We expect no changes to the law as a result of this ruling.

At this point, we anticipate no changes to the law as a result of this decision, but the M3 legal team will review the case thoroughly to ensure there is nothing in the ruling that will concern our clients.

Contact your M3 account management team if you have questions about the results of this decision.

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