Today, in a 6-3 decision, the Supreme Court ruled to uphold health insurance subsidies for 6.4 million Americans spread across 34 states. The ruling means that those who have purchased their health insurance through the federal exchange will see no change in the subsidies they receive from the federal government.

In the case, King v. Burwell, the plaintiffs unsuccessfully argued that consumers could only obtain subsidies through exchanges run by a state and, therefore, individuals living in the 34 states that did not establish a state exchange and are instead relying on the federal exchange for coverage are not eligible to receive subsidies. The basis for the plaintiffs’ argument was a section of the Affordable Care Act (ACA) that mandates subsidies be available to offset the cost of health care to those who have purchased health care in an exchange “established by the state.”

On the other side, the Obama Administration successfully argued that the term “established by the state” was a drafting error and that the writers of the ACA never meant to prevent Americans from buying insurance through the federal exchange.

Although the Court’s ruling maintains the status quo regarding health insurance subsidies, the Big “I” believes the ACA remains a fundamentally flawed law with plenty of room for improvement. In fact, just yesterday, Sens. Johnny Isakson (R-Georgia) and Chris Coons (D-Delaware) introduced Big “I”-supported bipartisan legislation, S. 1661, the “Access to Independent Health Insurance Advisors Act,’’ which aims to exclude agent commissions from the Medical Loss Ratio formula.

In addition, the association is joining others in the industry in fighting the ACA’s excise tax or “Cadillac tax” in a strategic series of efforts aimed at protecting the independent agency system, insurance consumers and small businesses from the harmful tax hike. In the U.S. House of Representatives, Rep. Frank Guinta (R-New Hampshire) introduced H.R. 879, the “Ax the Tax on Middle Class Americans Health Plans Act of 2015,” which would fully repeal the tax. In addition, Rep. Joe Courtney (D-Connecticut) introduced H.R. 2050, the “Middle Class Health Benefits Tax Repeal Act.” With more than 100 cosponsors, this legislation would also repeal the tax. Efforts are underway in the Senate for companion legislation.  

Although the Supreme Court ruled today to maintain the status quo regarding ACA subsidies, the Big “I” will continue to work with others in the market as well as both parties in Congress and the Administration to fix some of the law’s major flaws.

Wyatt Stewart is Big “I” director of federal government affairs.