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Statement on Affordable Care Act Subsidy Rulings

WASHINGTON – Congressman John Yarmuth (KY-3) issued the following statement on the two contradictory court rulings issued today regarding federal subsidies provided under the Affordable Care Act.

“Congress clearly intended for the law to help Americans purchasing health insurance in the new marketplaces regardless of whether the federal government or a state was operating the exchange,” Yarmuth said. “If that remains in question once the legal process is exhausted, then Congress will have the opportunity to ensure millions of Americans can keep the affordable, quality health insurance they’ve gained under the law.”

At issue is whether the Affordable Care Act allows the administration to provide federal subsidies to make health insurance more affordable to individuals buying private insurance plans through federally run exchanges, or only through marketplaces created by states.

In one decision, the 4th Circuit Court of Appeals in Richmond ruled the law allows the federal government to continue providing the subsidies in both types of exchanges. In the other, the D.C. Circuit Court of Appeals ruled that subsidies can only be provided to those buying through state-created exchanges.

Neither ruling applies to Kentucky, where Kynect, the state-based exchange, has helped more than 413,000 Kentuckians obtain affordable health insurance – many of them for the first time. The average premium for a policy on Kynect is $88.40. Federal assistance reduced the average Kynect premium by 74 percent.

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