"The central question in the case, King v. Burwell, No. 14-114, is what to make of a provision in the law limiting subsidies to “an exchange established by the state.” (If states do not establish their own exchanges, the health care law requires the federal government to run them instead.)
The challengers say the provision means that only people in states with their own exchanges can get subsidies. Congress made the distinction, they say, to encourage states to participate.
But the Internal Revenue Service has issued a regulation saying subsidies are allowed whether the exchange is run by a state or by the federal government. The challengers say that regulation is at odds with the law.
In response, Solicitor General Donald B. Verrilli Jr. told the justices that the I.R.S. interpretation was correct, while the one offered by the challengers was “contrary to the act’s text and structure and would render the act unrecognizable to the Congress that passed it.”
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