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In the News Press Release

High Court ACA Subsidy Case Could Unravel Health Reform

Publisher: Law360
January 22, 2015

Day Pitney healthcare law attorney Eric Fader was quoted in a January 22 Law360 article titled "High Court ACA Subsidy Case Could Unravel Health Reform." The article discusses various efforts by Congressional opponents of the Affordable Care Act (ACA) to challenge and potentially invalidate specific portions of the law.

Eric discussed the ACA's 2.3% medical device excise tax, previously discussed here. "The White House seems to be telegraphing that they're not going to defend [the device tax] really hard," he said. Eric also pointed out that the effort to repeal the device tax may be a precursor to efforts to chip away at other sources of funding for the ACA's initiatives. One such funding source is the "Cadillac" tax that will be imposed on the most expensive health care plans beginning in 2018.

Eric also commented on the pending Supreme Court case, King v. Burwell, that will determine whether purchasers of health insurance on insurance exchanges operated by the federal government will be entitled to receive subsidies just as those who obtain insurance on state-run exchanges may. The Court could rule that the federal subsidies are not permissible under the literal words of the ACA. "I personally don't think the subsidies provided through federal exchanges are illegal or contrary to what the ACA was intended to do," he said. "But if it happens, [the law] might start unraveling."

For the full article, click here.


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