Yesterday, June 25, 2015, the U.S. Supreme Court ruled 6-3 that it is constitutional for the government to subsidize American’s health insurance premiums. The case was King et al. v. Burwell, Secretary of Health and Human Services, et al. where the Patient Protection and Affordable Care Act (ACA) was being challenged as being unconstitutional. More specifically the case surrounded as to whether the subsidies could be provided by the federal government to residents of states that did not set up health care exchanges.
The ACA (commonly referred to as Obamacare) forces the government and employers of certain employees to pay for American’s health insurance premiums paid to insurance companies. As expected, health care stocks went through the roof on the stock market yesterday as now hospitals and insurance companies are guaranteed a large number of additional customers paid for by the American taxpayers. Nearly 9 million Americans receive an average of $272 per month subsidy to pay for their health insurance premiums.