
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm News
Author: Dan Brecher
Date: June 25, 2015
Counsel
212-286-0747 dbrecher@sh-law.comThe Affordable Care Act ruling, which involves subsidies provided to individuals who purchase insurance via Healthcare.gov, has the potential to dramatically shake up the healthcare industry.
The lawsuit, King v. Burwell, specifically addresses whether the Internal Revenue Service (IRS) may permissibly promulgate regulations to extend tax credit subsidies to coverage purchased through exchanges established by the federal government under Section 1321 of the ACA. Under the statute, tax credits are available for health insurance that is purchased through an exchange “established by the State.” However, after most states failed to create their own marketplaces, the IRS extended the subsidies to insurance purchased through the federal government’s exchange, which is operated via Healthcare.gov. More than six million people have purchased insurance through the federal exchange – the majority of whom received the tax subsidy.
The federal courts that have addressed whether the subsidies are limited to state exchanges have reached differing conclusions. Rather then wait to let a circuit split emerge, the U.S. Supreme Court elected to intervene in the fate of the ACA. If the Court adopts a narrow interpretation of the statute, the whole healthcare scheme could be thrown into a tailspin. Citizens of states that failed to set up their own insurance marketplaces would not receive a tax subsidy and would also not be penalized for failing to obtain health insurance. Experts predict that if a significant number of Americans left the program, the cost of insurance would skyrocket and put it out of reach for many.
For businesses, the Supreme Court’s decision could also eviscerate the employer mandate. Under the ACA, businesses with 50 or more employees will be required to offer health insurance to full-time employees, or pay a penalty. If the Court strikes down the subsidies for the federal exchange, the penalty for failing to comply would not be triggered since it only applies when workers receive tax credits for health insurance purchased via one of the exchanges.
Scarinci Hollenbeck’s legal team will have coverage of the Court’s decision in King v. Burwell on this blog as well as the Constitutional Law Reporter. So please stay tuned.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Scarinci Hollenbeck Partner Christopher D. Warren Named to New Jersey Supreme Court District VI Ethics Committee Little Falls, NJ — September 5, 2025 — Scarinci Hollenbeck, LLC is proud to announce that Christopher D. Warren, Partner, has been appointed to serve on the New Jersey Supreme Court District VI Ethics Committee for the term 2025–2029. Mr. Warren brings more than […]
Author: Scarinci Hollenbeck, LLC
Scarinci Hollenbeck Congratulates Theodore A. Schwartz Scholarship Recipient Adrienne Aiken Little Falls, NJ — July 21, 2025 — Scarinci Hollenbeck, LLC established the Theodore A. Schwartz Scholarship for Environmental Law to recognize the contributions of retired partner Theodore “Ted” Schwartz and support the next generation of environmental lawyers. Adrienne Aiken, the recipient of the 2025 […]
Author: Scarinci Hollenbeck, LLC
Ten Scarinci Hollenbeck Attorneys Recognized in 2026 Edition of Best Lawyers in America© Little Falls NJ – August 28, 2025 – Scarinci Hollenbeck, LLC is pleased to announce that ten attorneys have been recognized in the 2026 edition of The Best Lawyers in America®. First published in 1983, Best Lawyers is universally regarded as the definitive guide to legal excellence. […]
Author: Scarinci Hollenbeck, LLC
Scarinci Hollenbeck Partner Recognized for Continued Impact on Industrial Real Estate Industry Little Falls, NJ — July 25, 2025 — Scarinci Hollenbeck, LLC Partner Donald “Don” Pepe was recently recognized as a 2025 Influencer in Industrial Real Estate by GlobeSt, a leading commercial real estate publication. The GlobeSt award recognizes the professionals, teams, and companies […]
Author: Scarinci Hollenbeck, LLC
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
Bloomberg Law Podcast Discusses Shaquille O’Neil FTX Settlement With Ron Bienstock Little Falls, NJ – June 24, 2025 – Scarinci & Hollenbeck, LLC Partner and Chair of the firm’s Intellectual Property and Entertainment & Media departments Ronald S. Bienstock recently joined the Bloomberg Law podcast to discuss Shaquille O’Neal settling a class-action lawsuit over his FTX endorsement. […]
Author: Scarinci Hollenbeck, LLC
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!