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Supreme Court Upholds Nationwide Health Care Law Subsidies

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Supporters of the Affordable Care Act hold up signs as the opinion for health care is reported outside of the Supreme Court in Washington, Thursday June 25, 2015. The Supreme Court on Thursday upheld the nationwide tax subsidies under President Barack Obama's health care overhaul, in a ruling that preserves health insurance for millions of Americans. The justices said in a 6-3 ruling that the subsidies that 8.7 million people currently receive to make insurance affordable do not depend on where they live, under the 2010 health care law.  (AP Photo/Jacquelyn Martin)

Supporters of the Affordable Care Act hold up signs as the opinion for health care is reported outside of the Supreme Court in Washington, Thursday June 25, 2015. (AP Photo/Jacquelyn Martin)

MARK SHERMAN, Associated Press

WASHINGTON (AP) — The Supreme Court on Thursday upheld the nationwide tax subsidies underpinning President Barack Obama’s health care overhaul, rejecting a major challenge to the landmark law in a ruling that preserves health insurance for millions of Americans.

The justices said in a 6-3 ruling that the subsidies that 8.7 million people currently receive to make insurance affordable do not depend on where they live, as opponents contended.

The outcome was the second major victory for Obama in politically charged Supreme Court tests of his most significant domestic achievement. And it came the same day the court gave him an unexpected victory by preserving a key tool the administration uses to fight housing bias.

Chief Justice John Roberts again voted with his liberal colleagues in support of the health care law. Roberts also was the key vote to uphold it in 2012. Justice Anthony Kennedy, a dissenter in 2012, was part of the majority on Thursday.

“Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them,” Roberts declared in the majority opinion.

Limiting the subsidies only to individuals in states with their own exchanges could well push insurance markets in the other states “into a death spiral,” Roberts wrote.

Justice Antonin Scalia, in a dissent he summarized from the bench, strongly disagreed. “We should start calling this law SCOTUScare,” he said, using an acronym for the Supreme Court and suggesting his colleagues’ ownership by virtue of their twice stepping in to save the law from what he considered worthy challenges.

His comment drew a smile from Roberts, his seatmate and the object of Scala’s ire.

Scalia said that Roberts’ 2012 decision that upheld the law and his opinion on Thursday “will publish forever the discouraging truth that the Supreme Court of the United States favors some laws over others, and is prepared to do whatever it takes to uphold and assist its favorites.”

Justices Samuel Alito and Clarence Thomas joined the dissent, as they did in 2012.

Nationally, 10.2 million people have signed up for health insurance under the Obama health overhaul. That includes the 8.7 million people who are receiving an average subsidy of $272 a month to help pay their insurance premiums.

Of those receiving subsidies, 6.4 million were at risk of losing that aid because they live in states that did not set up their own health insurance exchanges.

The health insurance industry breathed a big sigh of relief, and a national organization representing state regulators from both political parties said the court’s decision will mean stable markets for consumers.

“This decision allows (state officials) to move forward with a level of confidence that their markets will not see significant disruption due to a paradigm shift,” said Ben Nelson, CEO of the National Association of Insurance Commissioners and a former Democratic senator from Nebraska.

Shares of publicly traded hospital operators including HCA Holdings Inc. and Tenet Healthcare Corp. soared after the ruling relieved those companies of the prospect of having to deal with an influx of uninsured people. Investors had worried that many patients would drop their coverage if they no longer had tax credits to help pay.

Republicans said the ruling would not mean the end of the political fight over the law, widely dubbed “Obamacare.”

Sen. Lindsey Graham of South Carolina, a Republican presidential contender, said that for 2016 candidates for Congress or the White House health care will be the “most dominant issue in the country.”

And Senate Majority Leader Mitch McConnell said Democrats who support the law “now have a choice: crow about Obamacare’s latest wobble toward the edge, or work with us to address the ongoing negative impact of a 2,000-page law that continues to make life miserable for too many of the same people it purported to help.”

The challenge devised by die-hard opponents of the law relied on four words — “established by the state” — in the more than 900-page law.

The law’s opponents argued that the vast majority of people who now get help paying for their insurance premiums are ineligible for their federal tax credits. That is because roughly three dozen states opted against creating their own health insurance marketplaces, or exchanges, and instead rely on the federal healthcare.gov to help people find coverage if they don’t get insurance through their jobs or the government.

In the challengers’ view, the phrase “established by the state” demonstrated that subsidies were to be available only to people in states that set up their own exchanges.

The administration, congressional Democrats and 22 states responded that it would make no sense to construct the law the way its opponents suggested. The idea behind the law’s structure was to decrease the number of uninsured. The law prevents insurers from denying coverage because of “pre-existing” health conditions. It requires almost everyone to be insured and provides financial help to consumers who otherwise would spend too much of their paycheck on their premiums.

The point of the last piece, the subsidies, is to keep enough people in the pool of insured to avoid triggering a disastrous decline in enrollment, a growing proportion of less healthy people and premium increases by insurers.

Several portions of the law indicate that consumers can claim tax credits no matter where they live. No member of Congress said that subsidies would be limited, and several states said in a separate brief to the court that they had no inkling they had to set up their own exchange for their residents to get tax credits.

The 2012 case took place in the midst of Obama’s re-election campaign, when Obama touted the largest expansion of the social safety net since the advent of Medicare nearly a half-century earlier. But at the time, the benefits of the Affordable Care Act were mostly in the future. Many of its provisions had yet to take effect.

In 2015, the landscape has changed, although the partisan and ideological divisions remain for a law that passed Congress in 2010 with no Republican votes.

The case is King v. Burwell, 14-114.

___

Associated Press writers Ricardo Alonso-Zaldivar, Connie Cass and Jessica Gresko in Washington and Business Writer Tom Murphy in Indianapolis contributed to this report.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Oakland Post: Week of September 2 – 8, 2026

The printed Weekly Edition of the Oakland Post: Week of September 2 – 8, 2026

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Longtime BWOPA Member Brendalyn Goodall Appointed to California Workforce Development Board 

Gov. Gavin Newsom has appointed longtime Black Women Organized for Political Action (BWOPA) member Brendalynn Goodall to the California Workforce Development Board. Goodall, an Oakland resident with decades of experience in public service, has held leadership positions focused on

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Post Co-Publisher Gay Plair Cobb with Brendalynn Goodall. Courtesy photo.

Gov. Gavin Newsom has appointed longtime Black Women Organized for Political Action (BWOPA) member Brendalynn Goodall to the California Workforce Development Board.

Goodall, an Oakland resident with decades of experience in public service, has held leadership positions focused on employment, aging services and assistance for underserved communities.

“Brendalynn will be a great addition to this Board,” said Gay Plair Cobb, who served as former state Assemblyman Sandre Swanson’s alternate to the California Workforce Development Board (CWDB).

“She understands that California’s non-profit organizations serve persons who have the most significant barriers to their labor market success and that the Board should help these groups navigate the complicated requirements of state funding.

“In other words, she will be a strong advocate for our most marginalized populations. Her voice is needed now, more than ever.”

CWDB works with the governor to shape workforce policies, programs and investments designed to strengthen the state’s economy. It collaborates with employers, workers, labor organizations, educational institutions, community groups and California’s 45 local workforce development boards to expand access to quality jobs and respond to regional employment needs.

 According to the board, its work includes coordinating state programs and guiding investments in workforce training and development.

BWOPA California celebrated the appointment, describing Goodall as a dedicated advocate for workers, families and older adults.

“Her appointment reflects a lifetime of leadership, service, and unwavering commitment to strengthening California’s workforce and expanding opportunity for all,” the organization stated in a press release.

Goodall served as summer jobs program coordinator in the Oakland Mayor’s Office from 2012 to 2014. In that position, she helped connect young people with employment opportunities and job experience.

Before joining the Mayor’s Office, Goodall was division manager for Aging and Adult Services in the City of Oakland Human Services Department from 2002 to 2011. She previously served as senior services supervisor and program director for the city’s Department of Aging, Health and Human Services from 1990 to 2002.

Goodall is also a member of the California Commission on Aging, which advises the governor and state officials on policies and programs affecting older Californians.

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Featured

‘Passing a Law Isn’t The Finish Line’: California Assembly Evaluates Implementation, Results

A separate review found that the California Public Utilities Commission’s implementation of AB 2316 had not fulfilled the law’s intent or produced new community solar projects. In response, Assemblymember Chris Ward (D-San Diego) introduced AB 1813, legislation to overhaul the state’s renewable energy program and increase access to solar technology.

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California State Assembly Chamber. Photo courtesy of California State Assembly.

California lawmakers are finding that laws passed in Sacramento do not always work as intended once implemented. A new Assembly oversight program has identified gaps in laws addressing wildfire recovery, insurance, foster care and clean energy.

Assembly Speaker Robert Rivas (D-Hollister) announced Aug. 17 that the Assembly had completed the first year of its Outcomes Review program. Billed as the first initiative of its kind in the nation, the program enlisted 15 Assembly members to evaluate 14 laws they authored or championed. Through public hearings and community meetings, lawmakers assessed whether the measures were producing their intended results.

“Passing a law isn’t the finish line,” said Rivas. “The Outcomes Review project makes sure we’re checking our work.”

The reviews identified both successes and shortcomings. The expansion of telehealth largely improved access to care and provided patients with greater flexibility. Affordable housing financing reforms also strengthened coordination among state agencies and could reduce duplicative paperwork, development costs and delays.

Other reviews uncovered more significant implementation problems. 

One focused on Assembly Bill (AB) 238, which was enacted after the Eaton and Palisades fires to provide eligible borrowers with up to 12 months of emergency mortgage forbearance. The review found lender noncompliance, insufficient consumer complaint data and a need for stronger coordination between state and federal agencies.

Those findings helped shape AB 1842 and AB 1847, both victim-protection bills that are currently pending in the Senate. 

After discovering that California’s FAIR Plan clearinghouse was failing to transition affected homeowners back into the private insurance market, Assemblymember Lisa Calderon (D-Whittier) introduced AB 69 to fix the issue. 

A separate review found that the California Public Utilities Commission’s implementation of AB 2316 had not fulfilled the law’s intent or produced new community solar projects. In response, Assemblymember Chris Ward (D-San Diego) introduced AB 1813, legislation to overhaul the state’s renewable energy program and increase access to solar technology.

Lawmakers also found that the FAIR Plan clearinghouse was not effectively helping homeowners move into the traditional insurance market, prompting the introduction of AB 69, legislation adding new reporting, notification, and access requirements. 

The program identified additional implementation problems related to foster care placement protections, oversight of charitable fundraising and wage theft enforcement.

Rivas said the findings demonstrate the need for lawmakers to continue evaluating legislation after it takes effect.

“This isn’t oversight for its own sake — it’s what accountability looks like, and we’re just getting started,” he said.

The Assembly plans to expand the Outcomes Review program in 2027 by involving more lawmakers and holding additional public hearings and community meetings. The next phase, according to Rivas, will build on the pilot year as lawmakers seek to identify implementation problems earlier and improve how state laws work in practice.

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