New Federal Court Ruling on Health Insurance Subsidies Does Not Affect Colorado

Contact: Ben Davis 303-522-6790

A ruling Tuesday in Federal District Court in Muskogee, Okla., does not impact Coloradans who receive financial assistance (tax credits) to lower the cost of their health insurance purchased through Connect for Health Colorado.

The federal court decision in Oklahoma, similar to a separate ruling in U.S. Court of Appeals for the District of Columbia, interprets the Affordable Care Act to say the federal government could not subsidize health insurance in those states that rely on the federal Marketplace.  A federal appeals court in Virginia in July ruled the opposite and upheld the tax credits.

These decisions have no impact on customers of Connect for Health Colorado – or in other states like Colorado that operate their own state-based health insurance Marketplaces (exchanges).

All cases were brought by states opposed to the healthcare law and challenge financial assistance (tax credits) paid to residents of the 36 states on the federal exchange. The Obama Administration is appealing the D.C. and Oklahoma decisions. The tax credits will continue while appeals are under way.

We are fortunate that Colorado’s legislature in 2011, on a bipartisan basis, opted to create a state-based Marketplace in Colorado, which now operates as Connect for Health Colorado. Our customers are not affected by the court ruling. If you receive tax credits to help lower the cost of your health insurance, there is no reason for concern about your coverage.