Why the Affordable Care Act Authorizes Tax Credits on the Federal Exchanges
Indiana University Maurer School of Law
University of California, Davis - School of Law
February 1, 2014
State Tax Notes, Vol. 71, No. 4, 2014
UC Berkeley Public Law Research Paper No. 2389446
UC Davis Legal Studies Research Paper No. 368
This Essay refutes Adler’s and Cannon’s argument that the Affordable Care Act (“Obamacare”) does not authorize premium tax credits for insurance policies purchased from the federal healthcare Exchanges. Adler’s and Cannon’s argument is the basis of challenges in a number of ongoing lawsuits, including Oklahoma ex rel. Pruitt v. Sebelius and Halbig v. Sebelius. This Essay conducts a textual analysis of the Affordable Care Act and concludes that the text clearly authorizes premium tax credits for insurance policies purchased from the federal healthcare Exchanges.
On November 7th, 2014, the U.S. Supreme Court agreed to hear the appeal of the King v. Burwell case. The Supreme Court will thus consider the arguments refuted in this Essay. If the Supreme Court accepts these arguments, commentators expect that the result will dramatically undermine the functioning of Obamacare in many states, potentially generating far worse outcomes than the status quo prior to Obamacare.
Number of Pages in PDF File: 7
Keywords: Obamacare, healthcare reform, health, tax credits, Adler, Cannon, Pruitt, Halbig, Sebelius, Affordable Care Act, ACA
Date posted: February 1, 2014 ; Last revised: November 8, 2014