Premium Tax Credits Available to Individuals Enrolled in Federal or State-Based Exchanges

The U.S. Supreme Court has ruled that the Affordable Care Act’s premium tax credits are available to eligible individuals who enroll in qualified health plans through any Health Insurance Exchange (Marketplace), regardless of whether it is a state-based Exchange or a federally-facilitated Exchange.

The ruling comes in response to conflicting July 2014 court rulings in the District of Columbia Circuit Court of Appeals and the Fourth Circuit Court of Appeals, after each court considered whether the premium tax credits are limited under the law only to individuals who enroll in qualified health plans through state-based Exchanges.

The IRS is expected to provide updates regarding this matter on IRS.gov/aca.

Stay tuned for more on the premium tax credit. For general information regarding the credit, visit our Premium Tax Credit for Individuals section.