On Friday November 7, 2014, the U.S. Supreme Court announced it would hear King v. Burwell, a move that will likely determine the fate of the Affordable Care Act ("ACA"). Depsite the absence of a circuit split, the Supreme Court will decide whether subsidies in the form of tax credits are available to consumers shopping on the ACA's federal market place. Without the subsidies, insurance would become unffordable to millions of shoppers. The result could lead to many healthy individuals refusing to purchase insurance on the market, leaving insurers with an unhealthy and unprofitable client base.
Interestingly, the recent mid-term election could also play a pivital role in the fate of the ACA. If the U.S. Supreme Court strikes down the subsidy provision in the ACA, Congress could choose to amend the legislation. However, with the Republic GOP taking control in the recent election, such an effort could prove to be an insurmountable challenge.
To follow the case see David King et al. v. Sylvia Matthews Burwell et al., case number 14-114, in the Supreme Court of the United States. http://www.supremecourt.gov/
For the Fourth Circuit Opinion in David King, et al. v. Sylvia Mathews Burwell et al., case number 14-1158, see http://isysweb.ca4.uscourts.gov/isysquery/78b70f25-6660-46c2-8014-f93880807cd0/1/doc/141158.p.pdf#xml=http://New-ISYS/isysquery/78b70f25-6660-46c2-8014-f93880807cd0/1/hilite/