Health insurance tax credits
King v. Burwell
In brief
The Supreme Court upheld the ruling that eligible people in states with federally run exchanges can receive Affordable Care Act tax credits.
- Where it stands
- Decided
Decided 6-3 · June 25, 2015 · Opinion by Chief Justice Roberts
- What it’s about
- David King challenged an IRS rule extending Affordable Care Act tax credits to people in states using federally run exchanges. The Supreme Court agreed with the Fourth Circuit that the law makes those credits available in those states.
- Who it affects
- Eligible people in states with federally run exchanges can receive Affordable Care Act tax credits.
Summary: written with AI from the case record.
What it's about
The Affordable Care Act provides for state-run exchanges and federally run exchanges in states that do not set one up.
Question presented
Did the Internal Revenue Service permissibly create a regulation that extended the tax credits the Affordable Care Act authorized to federal exchanges as well as those created by the states?
What the Court decided
Holding
Section 36B’s tax credits are available to individuals in States that have a Federal Exchange. 759 F. 3d 358, affirmed.
- Result
- Affirmed
The Court's reasoning
The Court read the Affordable Care Act as a whole and concluded that its tax-credit provision covers people in states with federally run exchanges.
The vote
From the opinions
“The Court holds that when the Patient Protection and Affordable Care Act says “Exchange established by the State” it means “Exchange established by the State or the Federal Government.””
What's next
The Fourth Circuit’s ruling remains in place, and the Supreme Court has resolved the tax-credit question for states with federal exchanges.
Documents
Opinions
Docket activity
New analysis added
AI analysis generated: Case Briefing
New analysis added
AI analysis generated: Impact Analysis
AI analysis generated: Opinion Summary
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AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
Case data updated: question_presented, extraction_metadata
Opinion added: King
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.