Halbig v. Burwell

Halbig v. Burwell was a significant legal case concerning the Patient Protection and Affordable Care Act (ACA). The core issue was whether individuals who purchased health insurance through a federal exchange, rather than a state-run exchange, were eligible for tax-credit subsidies.

A federal appeals court initially ruled that the ACA restricted subsidies only to state-established exchanges. However, the U.S. Supreme Court, in a related case, King v. Burwell, ultimately held that subsidies were permissible on federal exchanges as well. This decision was crucial for the implementation of the ACA, as millions of people relied on these subsidies to afford health insurance. The Supreme Court's interpretation prevented the potential collapse of the ACA's financing system.1