News / Politics

Supreme Court upholds Obamacare subsidies in 6-3 ruling

Thursday, 25 June 2015 3:37 PM [ Last Update: Friday, 26 June 2015 2:56 AM ]

The US Supreme Court on Thursday upheld a disputed portion of President Barack Obama’s healthcare law. (AFP photo)

The US Supreme Court has handed President Barack Obama a major victory by upholding a disputed portion of his landmark healthcare reform law.

In a 6-3 ruling, the judges said Thursday the federal government can subsidize health insurance by giving tax credits to consumers nationwide.

It was the second time the nation’s highest court ruled in favor of the healthcare law, widely known as Obamacare.

"Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," the court's majority said in the opinion, which was written by Chief Justice John Roberts.

Opponents of Obamacare had argued that it was unconstitutional for the federal government to subsidize insurance in states that rejected their own exchange for the federal system.

More than six million Americans have signed up to receive subsidies of on average $260 a month through the federal exchange in states that have not set up their own. They could have lost their coverage if the judges had ruled against the law.

People celebrate in front of the US Supreme Court after ruling was announced on the Affordable Care Act on June 25, 2015. (AFP photo)

"This is a victory for common sense and for all American families," declared Nancy Pelosi, leader of the Democratic minority in the House of Representatives.

President Obama celebrated the decision later on Thursday morning.

“After multiple challenges before the Supreme Court, the Affordable Care Act is here to stay,” Obama said during a statement in the Rose Garden.

If the lawsuit had succeeded, Obama said insurance would have become unaffordable for millions of middle-income Americans. “America would have gone backwards. That’s not what we do.”

Republicans have reacted angrily, with many presidential hopefuls vowing to repeal Obamacare if elected.

“Obamacare is fundamentally broken, increasing health care costs for millions of Americans,” House Speaker John Boehner said.

“Today's ruling doesn't change that fact,” the Republican from Ohio said.

Presidential candidate and former Florida governor Jeb Bush said, “As President of the United States, I would make fixing our broken healthcare system one of my top priorities.”

Senator Rand Paul, Republican of Kentucky, said as president he would make it his “mission” to repeal Obamacare and “propose real solutions.”

"Republicans will continue to fight tooth and nail to repeal this oppressive law," said Senator John Cornyn, the Republican Party's number two leader in the Senate.

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