Posted on 06/25/2015 7:46:31 AM PDT by Ray76
(Slip Opinion) OCTOBER TERM, 2014 1 Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337. SUPREME COURT OF THE UNITED STATES
Syllabus
KING ET AL. v. BURWELL, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT No. 14114. Argued March 4, 2015Decided June 25, 2015 The Patient Protection and Affordable Care Act grew out of a long his- tory of failed health insurance reform. In the 1990s, several States sought to expand access to coverage by imposing a pair of insurance market regulationsa guaranteed issue requirement, which bars insurers from denying coverage to any person because of his health, and a community rating requirement, which bars insurers from charging a person higher premiums for the same reason. The re- forms achieved the goal of expanding access to coverage, but they al- so encouraged people to wait until they got sick to buy insurance. The result was an economic death spiral: premiums rose, the num- ber of people buying insurance declined, and insurers left the market entirely. In 2006, however, Massachusetts discovered a way to make the guaranteed issue and community rating requirements workby requiring individuals to buy insurance and by providing tax credits to certain individuals to make insurance more affordable. The combi- nation of these three reformsinsurance market regulations, a cov- erage mandate, and tax creditsenabled Massachusetts to drastical- ly reduce its uninsured rate. The Affordable Care Act adopts a version of the three key reforms that made the Massachusetts system successful. First, the Act adopts the guaranteed issue and community rating requirements. 42 U. S. C. §§300gg, 300gg1. Second, the Act generally requires indi- viduals to maintain health insurance coverage or make a payment to the IRS, unless the cost of buying insurance would exceed eight per- cent of that individuals income. 26 U. S. C. §5000A. And third, the Act seeks to make insurance more affordable by giving refundable tax credits to individuals with household incomes between 100 per-
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Syllabus cent and 400 percent of the federal poverty line. §36B. In addition to those three reforms, the Act requires the creation of an Exchange in each Statebasically, a marketplace that allows people to compare and purchase insurance plans. The Act gives each State the opportunity to establish its own Exchange, but provides that the Federal Government will establish such Exchange if the State does not. 42 U. S. C. §§18031, 18041. Relatedly, the Act pro- vides that tax credits shall be allowed for any applicable taxpayer, 26 U. S. C. §36B(a), but only if the taxpayer has enrolled in an insur- ance plan through an Exchange established by the State under [42 U. S. C. §18031], §§36B(b)(c). An IRS regulation interprets that language as making tax credits available on an Exchange, 26 CFR §1.36B2, regardless of whether the Exchange is established and operated by a State . . . or by HHS, 45 CFR §155.20. Petitioners are four individuals who live in Virginia, which has a Federal Exchange. They do not wish to purchase health insurance. In their view, Virginias Exchange does not qualify as an Exchange established by the State under [42 U. S. C. §18031], so they should not receive any tax credits. That would make the cost of buying in- surance more than eight percent of petitioners income, exempting them from the Acts coverage requirement. As a result of the IRS Rule, however, petitioners would receive tax credits. That would make the cost of buying insurance less than eight percent of their in- come, which would subject them to the Acts coverage requirement. Petitioners challenged the IRS Rule in Federal District Court. The District Court dismissed the suit, holding that the Act unambiguous- ly made tax credits available to individuals enrolled through a Fed- eral Exchange. The Court of Appeals for the Fourth Circuit affirmed. The Fourth Circuit viewed the Act as ambiguous, and deferred to the IRSs interpretation under Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837. Held: Section 36Bs tax credits are available to individuals in States that have a Federal Exchange. Pp. 721. (a) When analyzing an agencys interpretation of a statute, this Court often applies the two-step framework announced in Chevron, 467 U. S. 837. But Chevron does not provide the appropriate frame- work here. The tax credits are one of the Acts key reforms and whether they are available on Federal Exchanges is a question of deep economic and political significance; had Congress wished to assign that question to an agency, it surely would have done so ex- pressly. And it is especially unlikely that Congress would have dele- gated this decision to the IRS, which has no expertise in crafting health insurance policy of this sort. It is instead the Courts task to determine the correct reading of
Cite as: 576 U. S. (2015) 3 Syllabus Section 36B. If the statutory language is plain, the Court must en- force it according to its terms. But oftentimes the meaningor am- biguityof certain words or phrases may only become evident when placed in context. So when deciding whether the language is plain, the Court must read the words in their context and with a view to their place in the overall statutory scheme. FDA v. Brown & Wil- liamson Tobacco Corp., 529 U. S. 120, 133. Pp. 79. (b) When read in context, the phrase an Exchange established by the State under [42 U. S. C. §18031] is properly viewed as ambigu- ous. The phrase may be limited in its reach to State Exchanges. But it could also refer to all Exchangesboth State and Federalfor purposes of the tax credits. If a State chooses not to follow the di- rective in Section 18031 to establish an Exchange, the Act tells the Secretary of Health and Human Services to establish such Ex- change. §18041. And by using the words such Exchange, the Act indicates that State and Federal Exchanges should be the same. But State and Federal Exchanges would differ in a fundamental way if tax credits were available only on State Exchangesone type of Ex- change would help make insurance more affordable by providing bil- lions of dollars to the States citizens; the other type of Exchange would not. Several other provisions in the Acte.g., Section 18031(i)(3)(B)s requirement that all Exchanges create outreach pro- grams to distribute fair and impartial information concerning . . . the availability of premium tax credits under section 36Bwould make little sense if tax credits were not available on Federal Ex- changes. The argument that the phrase established by the State would be superfluous if Congress meant to extend tax credits to both State and Federal Exchanges is unpersuasive. This Courts preference for avoiding surplusage constructions is not absolute. Lamie v. United States Trustee, 540 U. S. 526, 536. And rigorous application of that canon does not seem a particularly useful guide to a fair construction of the Affordable Care Act, which contains more than a few examples of inartful drafting. The Court nevertheless must do its best, bear- ing in mind the fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme. Utility Air Regulatory Group v. EPA, 573 U. S. , . Pp. 915. (c) Given that the text is ambiguous, the Court must look to the broader structure of the Act to determine whether one of Section 36Bs permissible meanings produces a substantive effect that is compatible with the rest of the law. United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd., 484 U. S. 365, 371. Here, the statutory scheme compels the Court to reject petitioners
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Syllabus interpretation because it would destabilize the individual insurance market in any State with a Federal Exchange, and likely create the very death spirals that Congress designed the Act to avoid. Under petitioners reading, the Act would not work in a State with a Federal Exchange. As they see it, one of the Acts three major reformsthe tax creditswould not apply. And a second major reformthe cov- erage requirementwould not apply in a meaningful way, because so many individuals would be exempt from the requirement without the tax credits. If petitioners are right, therefore, only one of the Acts three major reforms would apply in States with a Federal Exchange. The combination of no tax credits and an ineffective coverage re- quirement could well push a States individual insurance market into a death spiral. It is implausible that Congress meant the Act to op- erate in this manner. Congress made the guaranteed issue and community rating requirements applicable in every State in the Na- tion, but those requirements only work when combined with the cov- erage requirement and tax credits. It thus stands to reason that Congress meant for those provisions to apply in every State as well. Pp. 1519. (d) The structure of Section 36B itself also suggests that tax credits are not limited to State Exchanges. Together, Section 36B(a), which allows tax credits for any applicable taxpayer, and Section 36B(c)(1), which defines that term as someone with a household in- come between 100 percent and 400 percent of the federal poverty line, appear to make anyone in the specified income range eligible for a tax credit. According to petitioners, however, those provisions are an empty promise in States with a Federal Exchange. In their view, an applicable taxpayer in such a State would be eligible for a tax credit, but the amount of that tax credit would always be zero be- cause of two provisions buried deep within the Tax Code. That ar- gument fails because Congress does not alter the fundamental de- tails of a regulatory scheme in vague terms or ancillary provisions. Whitman v. American Trucking Assns., Inc., 531 U. S. 457. Pp. 19 20. (e) Petitioners plain-meaning arguments are strong, but the Acts context and structure compel the conclusion that Section 36B allows tax credits for insurance purchased on any Exchange created under the Act. Those credits are necessary for the Federal Exchanges to function like their State Exchange counterparts, and to avoid the type of calamitous result that Congress plainly meant to avoid. Pp. 2021. 759 F. 3d 358, affirmed.
ROBERTS, C. J., delivered the opinion of the Court, in which KEN-
Cite as: 576 U. S. (2015) 5 Syllabus NEDY, GINSBURG, BREYER, SOTOMAYOR, and KAGAN, JJ., joined. SCALIA, J., filed a dissenting opinion, in which THOMAS and ALITO, JJ., joined. Cite as: 576 U. S. (2015) 1 Opinion of the Court
NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Wash- ington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press. SUPREME COURT OF THE UNITED STATES
No. 14114
DAVID KING, ET AL., PETITIONERS v. SYLVIA BURWELL, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL. ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT [June 25, 2015]
CHIEF JUSTICE ROBERTS delivered the opinion of the Court. The Patient Protection and Affordable Care Act adopts a series of interlocking reforms designed to expand coverage in the individual health insurance market. First, the Act bars insurers from taking a persons health into account when deciding whether to sell health insurance or how much to charge. Second, the Act generally requires each person to maintain insurance coverage or make a payment to the Internal Revenue Service. And third, the Act gives tax credits to certain people to make insurance more affordable. In addition to those reforms, the Act requires the crea- tion of an Exchange in each Statebasically, a market- place that allows people to compare and purchase insur- ance plans. The Act gives each State the opportunity to establish its own Exchange, but provides that the Federal Government will establish the Exchange if the State does not. This case is about whether the Acts interlocking re-
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forms apply equally in each State no matter who estab- lishes the States Exchange. Specifically, the question pre- sented is whether the Acts tax credits are available in States that have a Federal Exchange. I A The Patient Protection and Affordable Care Act, 124 Stat. 119, grew out of a long history of failed health insur- ance reform. In the 1990s, several States began experi- menting with ways to expand peoples access to coverage. One common approach was to impose a pair of insurance market regulationsa guaranteed issue requirement, which barred insurers from denying coverage to any per- son because of his health, and a community rating re- quirement, which barred insurers from charging a person higher premiums for the same reason. Together, those requirements were designed to ensure that anyone who wanted to buy health insurance could do so. The guaranteed issue and community rating require- ments achieved that goal, but they had an unintended consequence: They encouraged people to wait until they got sick to buy insurance. Why buy insurance coverage when you are healthy, if you can buy the same coverage for the same price when you become ill? This conse- quenceknown as adverse selectionled to a second: Insurers were forced to increase premiums to account for the fact that, more and more, it was the sick rather than the healthy who were buying insurance. And that conse- quence fed back into the first: As the cost of insurance rose, even more people waited until they became ill to buy it. This led to an economic death spiral. As premiums rose higher and higher, and the number of people buying insurance sank lower and lower, insurers began to leave the market entirely. As a result, the number of people
Cite as: 576 U. S. (2015) 3
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without insurance increased dramatically. This cycle happened repeatedly during the 1990s. For example, in 1993, the State of Washington reformed its individual insurance market by adopting the guaranteed issue and community rating requirements. Over the next three years, premiums rose by 78 percent and the number of people enrolled fell by 25 percent. By 1999, 17 of the States 19 private insurers had left the market, and the remaining two had announced their intention to do so. Brief for Americas Health Insurance Plans as Amicus Curiae 1011. For another example, also in 1993, New York adopted the guaranteed issue and community rating requirements. Over the next few years, some major insurers in the indi- vidual market raised premiums by roughly 40 percent. By 1996, these reforms had effectively eliminated the com- mercial individual indemnity market in New York with the largest individual health insurer exiting the market. L. Wachenheim & H. Leida, The Impact of Guaranteed Issue and Community Rating Reforms on States Individ- ual Insurance Markets 38 (2012). In 1996, Massachusetts adopted the guaranteed issue and community rating requirements and experienced similar results. But in 2006, Massachusetts added two more reforms: The Commonwealth required individuals to buy insurance or pay a penalty, and it gave tax credits to certain individuals to ensure that they could afford the insurance they were required to buy. Brief for Bipartisan Economic Scholars as Amici Curiae 2425. The combina- tion of these three reformsinsurance market regula- tions, a coverage mandate, and tax creditsreduced the uninsured rate in Massachusetts to 2.6 percent, by far the lowest in the Nation. Hearing on Examining Individual State Experiences with Health Care Reform Coverage Initiatives in the Context of National Reform before the Senate Committee on Health, Education, Labor, and
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Pensions, 111th Cong., 1st Sess., 9 (2009). B The Affordable Care Act adopts a version of the three key reforms that made the Massachusetts system success- ful. First, the Act adopts the guaranteed issue and com- munity rating requirements. The Act provides that each health insurance issuer that offers health insurance cov- erage in the individual . . . market in a State must accept every . . . individual in the State that applies for such coverage. 42 U. S. C. §300gg1(a). The Act also bars insurers from charging higher premiums on the basis of a persons health. §300gg. Second, the Act generally requires individuals to main- tain health insurance coverage or make a payment to the IRS. 26 U. S. C. §5000A. Congress recognized that, with- out an incentive, many individuals would wait to pur- chase health insurance until they needed care. 42 U. S. C. §18091(2)(I). So Congress adopted a coverage requirement to minimize this adverse selection and broaden the health insurance risk pool to include healthy individuals, which will lower health insurance premiums. Ibid. In Congresss view, that coverage requirement was essential to creating effective health insurance markets. Ibid. Congress also provided an exemption from the cov- erage requirement for anyone who has to spend more than eight percent of his income on health insurance. 26 U. S. C. §§5000A(e)(1)(A), (e)(1)(B)(ii). Third, the Act seeks to make insurance more affordable by giving refundable tax credits to individuals with household incomes between 100 percent and 400 percent of the federal poverty line. §36B. Individuals who meet the Acts requirements may purchase insurance with the tax credits, which are provided in advance directly to the individuals insurer. 42 U. S. C. §§18081, 18082. These three reforms are closely intertwined. As noted,
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Congress found that the guaranteed issue and community rating requirements would not work without the coverage requirement. §18091(2)(I). And the coverage requirement would not work without the tax credits. The reason is that, without the tax credits, the cost of buying insurance would exceed eight percent of income for a large number of individuals, which would exempt them from the coverage requirement. Given the relationship between these three reforms, the Act provided that they should take effect on the same dayJanuary 1, 2014. See Affordable Care Act, §1253, redesignated §1255, 124 Stat. 162, 895; §§1401(e), 1501(d), id., at 220, 249. C In addition to those three reforms, the Act requires the creation of an Exchange in each State where people can shop for insurance, usually online. 42 U. S. C. §18031(b)(1). An Exchange may be created in one of two ways. First, the Act provides that [e]ach State shall . . . establish an American Health Benefit Exchange . . . for the State. Ibid. Second, if a State nonetheless chooses not to establish its own Exchange, the Act provides that the Secretary of Health and Human Services shall . . . establish and operate such Exchange within the State. §18041(c)(1). The issue in this case is whether the Acts tax credits are available in States that have a Federal Exchange rather than a State Exchange. The Act initially provides that tax credits shall be allowed for any applicable taxpayer. 26 U. S. C. §36B(a). The Act then provides that the amount of the tax credit depends in part on whether the taxpayer has enrolled in an insurance plan through an Exchange established by the State under section 1311 of the Patient Protection and Affordable Care Act [hereinafter 42 U. S. C. §18031]. 26 U. S. C. §§36B(b)(c) (emphasis added).
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The IRS addressed the availability of tax credits by promulgating a rule that made them available on both State and Federal Exchanges. 77 Fed. Reg. 30378 (2012). As relevant here, the IRS Rule provides that a taxpayer is eligible for a tax credit if he enrolled in an insurance plan through an Exchange, 26 CFR §1.36B2 (2013), which is defined as an Exchange serving the individual market . . . regardless of whether the Exchange is established and operated by a State . . . or by HHS, 45 CFR §155.20 (2014). At this point, 16 States and the District of Colum- bia have established their own Exchanges; the other 34 States have elected to have HHS do so. D Petitioners are four individuals who live in Virginia, which has a Federal Exchange. They do not wish to pur- chase health insurance. In their view, Virginias Ex- change does not qualify as an Exchange established by the State under [42 U. S. C. §18031], so they should not receive any tax credits. That would make the cost of buying insurance more than eight percent of their income, which would exempt them from the Acts coverage re- quirement. 26 U. S. C. §5000A(e)(1). Under the IRS Rule, however, Virginias Exchange would qualify as an Exchange established by the State under [42 U. S. C. §18031], so petitioners would receive tax credits. That would make the cost of buying insurance less than eight percent of petitioners income, which would subject them to the Acts coverage requirement. The IRS Rule therefore requires petitioners to either buy health insurance they do not want, or make a payment to the IRS. Petitioners challenged the IRS Rule in Federal District Court. The District Court dismissed the suit, holding that the Act unambiguously made tax credits available to individuals enrolled through a Federal Exchange. King v.
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Sebelius, 997 F. Supp. 2d 415 (ED Va. 2014). The Court of Appeals for the Fourth Circuit affirmed. 759 F. 3d 358 (2014). The Fourth Circuit viewed the Act as ambiguous and subject to at least two different interpretations. Id., at 372. The court therefore deferred to the IRSs interpre- tation under Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984). 759 F. 3d, at 376. The same day that the Fourth Circuit issued its deci- sion, the Court of Appeals for the District of Columbia Circuit vacated the IRS Rule in a different case, holding that the Act unambiguously restricts the tax credits to State Exchanges. Halbig v. Burwell, 758 F. 3d 390, 394 (2014). We granted certiorari in the present case. 574 U. S. (2014). II The Affordable Care Act addresses tax credits in what is now Section 36B of the Internal Revenue Code. That section provides: In the case of an applicable taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle . . . an amount equal to the premium assis- tance credit amount. 26 U. S. C. §36B(a). Section 36B then defines the term premium assistance credit amount as the sum of the premium assistance amounts deter- mined under paragraph (2) with respect to all coverage months of the taxpayer occurring during the taxable year. §36B(b)(1) (emphasis added). Section 36B goes on to define the two italicized termspremium assistance amount and coverage monthin part by referring to an insurance plan that is enrolled in through an Exchange established by the State under [42 U. S. C. §18031]. 26 U. S. C. §§36B(b)(2)(A), (c)(2)(A)(i). The parties dispute whether Section 36B authorizes tax credits for individuals who enroll in an insurance plan through a Federal Exchange. Petitioners argue that a
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Federal Exchange is not an Exchange established by the State under [42 U. S. C. §18031], and that the IRS Rule therefore contradicts Section 36B. Brief for Petitioners 1820. The Government responds that the IRS Rule is lawful because the phrase an Exchange established by the State under [42 U. S. C. §18031] should be read to include Federal Exchanges. Brief for Respondents 2025. When analyzing an agencys interpretation of a statute, we often apply the two-step framework announced in Chevron, 467 U. S. 837. Under that framework, we ask whether the statute is ambiguous and, if so, whether the agencys interpretation is reasonable. Id., at 842843. This approach is premised on the theory that a statutes ambiguity constitutes an implicit delegation from Con- gress to the agency to fill in the statutory gaps. FDA v. Brown & Williamson Tobacco Corp., 529 U. S. 120, 159 (2000). In extraordinary cases, however, there may be reason to hesitate before concluding that Congress has intended such an implicit delegation. Ibid. This is one of those cases. The tax credits are among the Acts key reforms, involving billions of dollars in spending each year and affecting the price of health insur- ance for millions of people. Whether those credits are available on Federal Exchanges is thus a question of deep economic and political significance that is central to this statutory scheme; had Congress wished to assign that question to an agency, it surely would have done so ex- pressly. Utility Air Regulatory Group v. EPA, 573 U. S. , (2014) (slip op., at 19) (quoting Brown & William- son, 529 U. S., at 160). It is especially unlikely that Con- gress would have delegated this decision to the IRS, which has no expertise in crafting health insurance policy of this sort. See Gonzales v. Oregon, 546 U. S. 243, 266267 (2006). This is not a case for the IRS. It is instead our task to determine the correct reading of Section 36B. If the statutory language is plain, we must
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enforce it according to its terms. Hardt v. Reliance Stand- ard Life Ins. Co., 560 U. S. 242, 251 (2010). But often- times the meaningor ambiguityof certain words or phrases may only become evident when placed in context. Brown & Williamson, 529 U. S., at 132. So when deciding whether the language is plain, we must read the words in their context and with a view to their place in the overall statutory scheme. Id., at 133 (internal quotation marks omitted). Our duty, after all, is to construe statutes, not isolated provisions. Graham County Soil and Water Conservation Dist. v. United States ex rel. Wilson, 559 U. S. 280, 290 (2010) (internal quotation marks omitted). A We begin with the text of Section 36B. As relevant here, Section 36B allows an individual to receive tax credits only if the individual enrolls in an insurance plan through an Exchange established by the State under [42 U. S. C. §18031]. In other words, three things must be true: First, the individual must enroll in an insurance plan through an Exchange. Second, that Exchange must be estab- lished by the State. And third, that Exchange must be established under [42 U. S. C. §18031]. We address each requirement in turn. First, all parties agree that a Federal Exchange quali- fies as an Exchange for purposes of Section 36B. See Brief for Petitioners 22; Brief for Respondents 22. Section 18031 provides that [e]ach State shall . . . establish an American Health Benefit Exchange . . . for the State. §18031(b)(1). Although phrased as a requirement, the Act gives the States flexibility by allowing them to elect whether they want to establish an Exchange. §18041(b). If the State chooses not to do so, Section 18041 provides that the Secretary shall . . . establish and operate such Exchange within the State. §18041(c)(1) (emphasis added).
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By using the phrase such Exchange, Section 18041 instructs the Secretary to establish and operate the same Exchange that the State was directed to establish under Section 18031. See Blacks Law Dictionary 1661 (10th ed. 2014) (defining such as That or those; having just been mentioned). In other words, State Exchanges and Fed- eral Exchanges are equivalentthey must meet the same requirements, perform the same functions, and serve the same purposes. Although State and Federal Exchanges are established by different sovereigns, Sections 18031 and 18041 do not suggest that they differ in any meaning- ful way. A Federal Exchange therefore counts as an Exchange under Section 36B. Second, we must determine whether a Federal Ex- change is established by the State for purposes of Sec- tion 36B. At the outset, it might seem that a Federal Exchange cannot fulfill this requirement. After all, the Act defines State to mean each of the 50 States and the District of Columbiaa definition that does not include the Federal Government. 42 U. S. C. §18024(d). But when read in context, with a view to [its] place in the overall statutory scheme, the meaning of the phrase established by the State is not so clear. Brown & Williamson, 529 U. S., at 133 (internal quotation marks omitted). After telling each State to establish an Exchange, Sec- tion 18031 provides that all Exchanges shall make avail- able qualified health plans to qualified individuals. 42 U. S. C. §18031(d)(2)(A). Section 18032 then defines the term qualified individual in part as an individual who resides in the State that established the Exchange. §18032(f)(1)(A). And thats a problem: If we give the phrase the State that established the Exchange its most natural meaning, there would be no qualified individuals on Federal Exchanges. But the Act clearly contemplates that there will be qualified individuals on every Exchange.
Cite as: 576 U. S. (2015) 11
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As we just mentioned, the Act requires all Exchanges to make available qualified health plans to qualified indi- vidualssomething an Exchange could not do if there were no such individuals. §18031(d)(2)(A). And the Act tells the Exchange, in deciding which health plans to offer, to consider the interests of qualified individuals . . . in the State or States in which such Exchange operatesagain, something the Exchange could not do if qualified individ- uals did not exist. §18031(e)(1)(B). This problem arises repeatedly throughout the Act. See, e.g., §18031(b)(2) (allowing a State to create one Exchange . . . for providing . . . services to both qualified individuals and qualified small employers, rather than creating separate Exchanges for those two groups).1 These provisions suggest that the Act may not always use the phrase established by the State in its most natu- ral sense. Thus, the meaning of that phrase may not be as clear as it appears when read out of context. Third, we must determine whether a Federal Exchange is established under [42 U. S. C. §18031]. This too might seem a requirement that a Federal Exchange cannot fulfill, because it is Section 18041 that tells the Secretary when to establish and operate such Exchange. But here again, the way different provisions in the statute interact suggests otherwise. The Act defines the term Exchange to mean an Amer- ican Health Benefit Exchange established under section 18031. §300gg91(d)(21). If we import that definition 1 The dissent argues that one would naturally read instructions about qualified individuals to be inapplicable to the extent a particular Exchange has no such individuals. Post, at 1011 (SCALIA, J., dissent- ing). But the fact that the dissents interpretation would make so many parts of the Act inapplicable to Federal Exchanges is precisely what creates the problem. It would be odd indeed for Congress to write such detailed instructions about customers on a State Exchange, while having nothing to say about those on a Federal Exchange.
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into Section 18041, the Act tells the Secretary to establish and operate such American Health Benefit Exchange established under section 18031. That suggests that Section 18041 authorizes the Secretary to establish an Exchange under Section 18031, not (or not only) under Section 18041. Otherwise, the Federal Exchange, by definition, would not be an Exchange at all. See Halbig, 758 F. 3d, at 399400 (acknowledging that the Secretary establishes Federal Exchanges under Section 18031). This interpretation of under [42 U. S. C. §18031] fits best with the statutory context. All of the requirements that an Exchange must meet are in Section 18031, so it is sensible to regard all Exchanges as established under that provision. In addition, every time the Act uses the word Exchange, the definitional provision requires that we substitute the phrase Exchange established under section 18031. If Federal Exchanges were not established under Section 18031, therefore, literally none of the Acts re- quirements would apply to them. Finally, the Act repeat- edly uses the phrase established under [42 U. S. C. §18031] in situations where it would make no sense to distinguish between State and Federal Exchanges. See, e.g., 26 U. S. C. §125(f)(3)(A) (2012 ed., Supp. I) (The term qualified benefit shall not include any qualified health plan . . . offered through an Exchange established under [42 U. S. C. §18031]); 26 U. S. C. §6055(b)(1)(B)(iii)(I) (2012 ed.) (requiring insurers to report whether each insurance plan they provided is a qualified health plan offered through an Exchange established under [42 U. S. C. §18031]). A Federal Exchange may therefore be considered one established under [42 U. S. C. §18031]. The upshot of all this is that the phrase an Exchange established by the State under [42 U. S. C. §18031] is properly viewed as ambiguous. The phrase may be limited in its reach to State Exchanges. But it is also possible that the phrase refers to all Exchangesboth State and
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Federalat least for purposes of the tax credits. If a State chooses not to follow the directive in Section 18031 that it establish an Exchange, the Act tells the Secretary to establish such Exchange. §18041. And by using the words such Exchange, the Act indicates that State and Federal Exchanges should be the same. But State and Federal Exchanges would differ in a fundamental way if tax credits were available only on State Exchangesone type of Exchange would help make insurance more afford- able by providing billions of dollars to the States citizens; the other type of Exchange would not.2 The conclusion that Section 36B is ambiguous is further supported by several provisions that assume tax credits will be available on both State and Federal Exchanges. For example, the Act requires all Exchanges to create outreach programs that must distribute fair and impar- tial information concerning . . . the availability of premium tax credits under section 36B. §18031(i)(3)(B). The Act also requires all Exchanges to establish and make avail- able by electronic means a calculator to determine the actual cost of coverage after the application of any pre- mium tax credit under section 36B. §18031(d)(4)(G). And the Act requires all Exchanges to report to the Treasury Secretary information about each health plan they sell, 2 The dissent argues that the phrase such Exchange does not sug- gest that State and Federal Exchanges are in all respects equivalent. Post, at 8. In support, it quotes the Constitutions Elections Clause, which makes the state legislature primarily responsible for prescribing election regulations, but allows Congress to make or alter such Regu- lations. Art. I, §4, cl. 1. No one would say that state and federal election regulations are in all respects equivalent, the dissent contends, so we should not say that State and Federal Exchanges are. But the Elections Clause does not precisely define what an election regulation must look like, so Congress can prescribe regulations that differ from what the State would prescribe. The Affordable Care Act does precisely define what an Exchange must look like, however, so a Federal Ex- change cannot differ from a State Exchange.
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including the aggregate amount of any advance payment of such credit, [a]ny information . . . necessary to deter- mine eligibility for, and the amount of, such credit, and any [i]nformation necessary to determine whether a taxpayer has received excess advance payments. 26 U. S. C. §36B(f)(3). If tax credits were not available on Federal Exchanges, these provisions would make little sense. Petitioners and the dissent respond that the words established by the State would be unnecessary if Con- gress meant to extend tax credits to both State and Fed- eral Exchanges. Brief for Petitioners 20; post, at 45. But our preference for avoiding surplusage constructions is not absolute. Lamie v. United States Trustee, 540 U. S. 526, 536 (2004); see also Marx v. General Revenue Corp., 568 U. S. , (2013) (slip op., at 13) (The canon against surplusage is not an absolute rule). And specifi- cally with respect to this Act, rigorous application of the canon does not seem a particularly useful guide to a fair construction of the statute. The Affordable Care Act contains more than a few ex- amples of inartful drafting. (To cite just one, the Act creates three separate Section 1563s. See 124 Stat. 270, 911, 912.) Several features of the Acts passage contributed to that unfortunate reality. Congress wrote key parts of the Act behind closed doors, rather than through the traditional legislative process. Cannan, A Legislative History of the Affordable Care Act: How Legislative Pro- cedure Shapes Legislative History, 105 L. Lib. J. 131, 163 (2013). And Congress passed much of the Act using a complicated budgetary procedure known as reconcilia- tion, which limited opportunities for debate and amend- ment, and bypassed the Senates normal 60-vote filibuster requirement. Id., at 159167. As a result, the Act does not reflect the type of care and deliberation that one might expect of such significant legislation. Cf. Frankfurter,
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Some Reflections on the Reading of Statutes, 47 Colum. L. Rev. 527, 545 (1947) (describing a cartoon in which a senator tells his colleagues I admit this new bill is too complicated to understand. Well just have to pass it to find out what it means. ). Anyway, we must do our best, bearing in mind the fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme. Util- ity Air Regulatory Group, 573 U. S., at (slip op., at 15) (internal quotation marks omitted). After reading Section 36B along with other related provisions in the Act, we cannot conclude that the phrase an Exchange established by the State under [Section 18031] is unambiguous. B Given that the text is ambiguous, we must turn to the broader structure of the Act to determine the meaning of Section 36B. A provision that may seem ambiguous in isolation is often clarified by the remainder of the statu- tory scheme . . . because only one of the permissible mean- ings produces a substantive effect that is compatible with the rest of the law. United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd., 484 U. S. 365, 371 (1988). Here, the statutory scheme compels us to reject petitioners interpretation because it would destabilize the individual insurance market in any State with a Federal Exchange, and likely create the very death spirals that Congress designed the Act to avoid. See New York State Dept. of Social Servs. v. Dublino, 413 U. S. 405, 419420 (1973) (We cannot interpret federal statutes to negate their own stated purposes.).3 3 The dissent notes that several other provisions in the Act use the phrase established by the State, and argues that our holding applies to each of those provisions. Post, at 56. But the presumption of consistent usage readily yields to context, and a statutory term may
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As discussed above, Congress based the Affordable Care Act on three major reforms: first, the guaranteed issue and community rating requirements; second, a require- ment that individuals maintain health insurance coverage or make a payment to the IRS; and third, the tax credits for individuals with household incomes between 100 per- cent and 400 percent of the federal poverty line. In a State that establishes its own Exchange, these three reforms work together to expand insurance coverage. The guaranteed issue and community rating requirements ensure that anyone can buy insurance; the coverage re- quirement creates an incentive for people to do so before they get sick; and the tax creditsit is hopedmake insurance more affordable. Together, those reforms min- imize . . . adverse selection and broaden the health in- surance risk pool to include healthy individuals, which will lower health insurance premiums. 42 U. S. C. §18091(2)(I). Under petitioners reading, however, the Act would operate quite differently in a State with a Federal Ex- change. As they see it, one of the Acts three major re- formsthe tax creditswould not apply. And a second major reformthe coverage requirementwould not apply in a meaningful way. As explained earlier, the coverage requirement applies only when the cost of buying health insurance (minus the amount of the tax credits) is less than eight percent of an individuals income. 26 U. S. C. §§5000A(e)(1)(A), (e)(1)(B)(ii). So without the tax credits, the coverage requirement would apply to fewer individuals. And it would be a lot fewer. In 2014, approx- mean different things in different places. Utility Air Regulatory Group v. EPA, 573 U. S. , (2014) (slip op., at 15) (internal quotation marks omitted). That is particularly true when, as here, the Act is far from a chef doeuvre of legislative draftsmanship. Ibid. Because the other provisions cited by the dissent are not at issue here, we do not address them.
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imately 87 percent of people who bought insurance on a Federal Exchange did so with tax credits, and virtually all of those people would become exempt. HHS, A. Burke, A. Misra, & S. Sheingold, Premium Affordability, Competi- tion, and Choice in the Health Insurance Marketplace 5 (2014); Brief for Bipartisan Economic Scholars as Amici Curiae 1920. If petitioners are right, therefore, only one of the Acts three major reforms would apply in States with a Federal Exchange. The combination of no tax credits and an ineffective coverage requirement could well push a States individual insurance market into a death spiral. One study predicts that premiums would increase by 47 percent and enroll- ment would decrease by 70 percent. E. Saltzman & C. Eibner, The Effect of Eliminating the Affordable Care Acts Tax Credits in Federally Facilitated Marketplaces (2015). Another study predicts that premiums would increase by 35 percent and enrollment would decrease by 69 percent. L. Blumberg, M. Buettgens, & J. Holahan, The Implications of a Supreme Court Finding for the Plaintiff in King vs. Burwell: 8.2 Million More Uninsured and 35% Higher Premiums (2015). And those effects would not be limited to individuals who purchase insur- ance on the Exchanges. Because the Act requires insurers to treat the entire individual market as a single risk pool, 42 U. S. C. §18032(c)(1), premiums outside the Exchange would rise along with those inside the Exchange. Brief for Bipartisan Economic Scholars as Amici Curiae 1112. It is implausible that Congress meant the Act to operate in this manner. See National Federation of Independent Business v. Sebelius, 567 U. S. , (2012) (SCALIA, KENNEDY, THOMAS, and ALITO, JJ., dissenting) (slip op., at 60) (Without the federal subsidies . . . the exchanges would not operate as Congress intended and may not operate at all.). Congress made the guaranteed issue and community rating requirements applicable in every State
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in the Nation. But those requirements only work when combined with the coverage requirement and the tax credits. So it stands to reason that Congress meant for those provisions to apply in every State as well.4 Petitioners respond that Congress was not worried about the effects of withholding tax credits from States with Federal Exchanges because Congress evidently believed it was offering states a deal they would not re- fuse. Brief for Petitioners 36. Congress may have been wrong about the States willingness to establish their own Exchanges, petitioners continue, but that does not allow this Court to rewrite the Act to fix that problem. That is particularly true, petitioners conclude, because the States likely would have created their own Exchanges in the absence of the IRS Rule, which eliminated any incentive that the States had to do so. Id., at 3638. Section 18041 refutes the argument that Congress believed it was offering the States a deal they would not 4 The dissent argues that our analysis show[s] only that the statu- tory scheme contains a flaw, one that appeared as well in other parts of the Act. Post, at 14. For support, the dissent notes that the guaran- teed issue and community rating requirements might apply in the federal territories, even though the coverage requirement does not. Id., at 1415. The confusion arises from the fact that the guaranteed issue and community rating requirements were added as amendments to the Public Health Service Act, which contains a definition of the word State that includes the territories, 42 U. S. C. §201(f), while the later- enacted Affordable Care Act contains a definition of the word State that excludes the territories, §18024(d). The predicate for the dissents point is therefore uncertain at best. The dissent also notes that a different part of the Act established a long-term-care insurance program with guaranteed-issue and community- rating requirements, but without an individual mandate or subsi- dies. Post, at 14. True enough. But the fact that Congress was willing to accept the risk of adverse selection in a comparatively minor pro- gram does not show that Congress was willing to do so in the general health insurance programthe very heart of the Act. Moreover, Congress said expressly that it wanted to avoid adverse selection in the health insurance markets. §18091(2)(I).
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refuse. That section provides that, if a State elects not to establish an Exchange, the Secretary shall . . . establish and operate such Exchange within the State. 42 U. S. C. §18041(c)(1)(A). The whole point of that provision is to create a federal fallback in case a State chooses not to establish its own Exchange. Contrary to petitioners argument, Congress did not believe it was offering States a deal they would not refuseit expressly addressed what would happen if a State did refuse the deal. C Finally, the structure of Section 36B itself suggests that tax credits are not limited to State Exchanges. Section 36B(a) initially provides that tax credits shall be allowed for any applicable taxpayer. Section 36B(c)(1) then defines an applicable taxpayer as someone who (among other things) has a household income between 100 percent and 400 percent of the federal poverty line. Together, these two provisions appear to make anyone in the speci- fied income range eligible to receive a tax credit. According to petitioners, however, those provisions are an empty promise in States with a Federal Exchange. In their view, an applicable taxpayer in such a State would be eligible for a tax creditbut the amount of that tax credit would always be zero. And that is becausediving several layers down into the Tax CodeSection 36B says that the amount of the tax credits shall be an amount equal to the premium assistance credit amount, §36B(a); and then says that the term premium assistance credit amount means the sum of the premium assistance amounts determined under paragraph (2) with respect to all coverage months of the taxpayer occurring during the taxable year, §36B(b)(1); and then says that the term premium assistance amount is tied to the amount of the monthly premium for insurance purchased on an Ex- change established by the State under [42 U. S. C.
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§18031], §36B(b)(2); and then says that the term cover- age month means any month in which the taxpayer has insurance through an Exchange established by the State under [42 U. S. C. §18031], §36B(c)(2)(A)(i). We have held that Congress does not alter the funda- mental details of a regulatory scheme in vague terms or ancillary provisions. Whitman v. American Trucking Assns., Inc., 531 U. S. 457, 468 (2001). But in petitioners view, Congress made the viability of the entire Affordable Care Act turn on the ultimate ancillary provision: a sub- sub-sub section of the Tax Code. We doubt that is what Congress meant to do. Had Congress meant to limit tax credits to State Exchanges, it likely would have done so in the definition of applicable taxpayer or in some other prominent manner. It would not have used such a wind- ing path of connect-the-dots provisions about the amount of the credit.5 D Petitioners arguments about the plain meaning of Section 36B are strong. But while the meaning of the phrase an Exchange established by the State under [42 U. S. C. §18031] may seem plain when viewed in isola- tion, such a reading turns out to be untenable in light of [the statute] as a whole. Department of Revenue of Ore. v. ACF Industries, Inc., 510 U. S. 332, 343 (1994). In this instance, the context and structure of the Act compel us to depart from what would otherwise be the most natural reading of the pertinent statutory phrase.
5 The dissent cites several provisions that make[ ] taxpayers of all States eligible for a credit, only to provide later that the amount of the credit may be zero. Post, at 11 (citing 26 U. S. C. §§24, 32, 35, 36). None of those provisions, however, is crucial to the viability of a com- prehensive program like the Affordable Care Act. No one suggests, for example, that the first-time-homebuyer tax credit, §36, is essential to the viability of federal housing regulation.
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Reliance on context and structure in statutory interpre- tation is a subtle business, calling for great wariness lest what professes to be mere rendering becomes creation and attempted interpretation of legislation becomes legislation itself. Palmer v. Massachusetts, 308 U. S. 79, 83 (1939). For the reasons we have given, however, such reliance is appropriate in this case, and leads us to conclude that Section 36B allows tax credits for insurance purchased on any Exchange created under the Act. Those credits are necessary for the Federal Exchanges to function like their State Exchange counterparts, and to avoid the type of calamitous result that Congress plainly meant to avoid. * * * In a democracy, the power to make the law rests with those chosen by the people. Our role is more confinedto say what the law is. Marbury v. Madison, 1 Cranch 137, 177 (1803). That is easier in some cases than in others. But in every case we must respect the role of the Legisla- ture, and take care not to undo what it has done. A fair reading of legislation demands a fair understanding of the legislative plan. Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them. If at all possible, we must interpret the Act in a way that is con- sistent with the former, and avoids the latter. Section 36B can fairly be read consistent with what we see as Con- gresss plan, and that is the reading we adopt. The judgment of the United States Court of Appeals for the Fourth Circuit is Affirmed.
Cite as: 576 U. S. (2015) 1
SCALIA, J., dissenting SUPREME COURT OF THE UNITED STATES
No. 14114
DAVID KING, ET AL., PETITIONERS v. SYLVIA BURWELL, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL. ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT [June 25, 2015]
JUSTICE SCALIA, with whom JUSTICE THOMAS and JUSTICE ALITO join, dissenting. The Court holds that when the Patient Protection and Affordable Care Act says Exchange established by the State it means Exchange established by the State or the Federal Government. That is of course quite absurd, and the Courts 21 pages of explanation make it no less so. I The Patient Protection and Affordable Care Act makes major reforms to the American health-insurance market. It provides, among other things, that every State shall . . . establish an American Health Benefit Exchangea marketplace where people can shop for health-insurance plans. 42 U. S. C. §18031(b)(1). And it provides that if a State does not comply with this instruction, the Secretary of Health and Human Services must establish and oper- ate such Exchange within the State. §18041(c)(1). A separate part of the Acthoused in §36B of the Inter- nal Revenue Codegrants premium tax credits to subsi- dize certain purchases of health insurance made on Ex- changes. The tax credit consists of premium assistance amounts for coverage months. 26 U. S. C. §36B(b)(1). An individual has a coverage month only when he is cov-
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ered by an insurance plan that was enrolled in through an Exchange established by the State under [§18031]. §36B(c)(2)(A). And the law ties the size of the premium assistance amount to the premiums for health plans which cover the individual and which were enrolled in through an Exchange established by the State under [§18031]. §36B(b)(2)(A). The premium assistance amount further depends on the cost of certain other insurance plans of- fered through the same Exchange. §36B(b)(3)(B)(i). This case requires us to decide whether someone who buys insurance on an Exchange established by the Secre- tary gets tax credits. You would think the answer would be obviousso obvious there would hardly be a need for the Supreme Court to hear a case about it. In order to receive any money under §36B, an individual must enroll in an insurance plan through an Exchange established by the State. The Secretary of Health and Human Services is not a State. So an Exchange established by the Secre- tary is not an Exchange established by the Statewhich means people who buy health insurance through such an Exchange get no money under §36B. Words no longer have meaning if an Exchange that is not established by a State is established by the State. It is hard to come up with a clearer way to limit tax credits to state Exchanges than to use the words established by the State. And it is hard to come up with a reason to include the words by the State other than the purpose of limiting credits to state Exchanges. [T]he plain, obvious, and rational meaning of a statute is always to be preferred to any curious, narrow, hidden sense that nothing but the exigency of a hard case and the ingenuity and study of an acute and powerful intellect would discover. Lynch v. Alworth-Stephens Co., 267 U. S. 364, 370 (1925) (internal quotation marks omitted). Under all the usual rules of interpretation, in short, the Government should lose this case. But normal rules of interpretation seem always to
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yield to the overriding principle of the present Court: The Affordable Care Act must be saved. II The Court interprets §36B to award tax credits on both federal and state Exchanges. It accepts that the most natural sense of the phrase Exchange established by the State is an Exchange established by a State. Ante, at 11. (Understatement, thy name is an opinion on the Afford- able Care Act!) Yet the opinion continues, with no sem- blance of shame, that it is also possible that the phrase refers to all Exchangesboth State and Federal. Ante, at 13. (Impossible possibility, thy name is an opinion on the Affordable Care Act!) The Court claims that the context and structure of the Act compel [it] to depart from what would otherwise be the most natural reading of the perti- nent statutory phrase. Ante, at 21. I wholeheartedly agree with the Court that sound inter- pretation requires paying attention to the whole law, not homing in on isolated words or even isolated sections. Context always matters. Let us not forget, however, why context matters: It is a tool for understanding the terms of the law, not an excuse for rewriting them. Any effort to understand rather than to rewrite a law must accept and apply the presumption that lawmakers use words in their natural and ordinary signification. Pensacola Telegraph Co. v. Western Union Telegraph Co., 96 U. S. 1, 12 (1878). Ordinary connotation does not always prevail, but the more unnatural the proposed interpretation of a law, the more compelling the contex- tual evidence must be to show that it is correct. Todays interpretation is not merely unnatural; it is unheard of. Who would ever have dreamt that Exchange established by the State means Exchange established by the State or the Federal Government? Little short of an express statu- tory definition could justify adopting this singular reading.
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Yet the only pertinent definition here provides that State means each of the 50 States and the District of Colum- bia. 42 U. S. C. §18024(d). Because the Secretary is neither one of the 50 States nor the District of Columbia, that definition positively contradicts the eccentric theory that an Exchange established by the Secretary has been established by the State. Far from offering the overwhelming evidence of meaning needed to justify the Courts interpretation, other contex- tual clues undermine it at every turn. To begin with, other parts of the Act sharply distinguish between the establishment of an Exchange by a State and the estab- lishment of an Exchange by the Federal Government. The States authority to set up Exchanges comes from one provision, §18031(b); the Secretarys authority comes from an entirely different provision, §18041(c). Funding for States to establish Exchanges comes from one part of the law, §18031(a); funding for the Secretary to establish Exchanges comes from an entirely different part of the law, §18121. States generally run state-created Ex- changes; the Secretary generally runs federally created Exchanges. §18041(b)(c). And the Secretarys authority to set up an Exchange in a State depends upon the States [f]ailure to establish [an] Exchange. §18041(c) (empha- sis added). Provisions such as these destroy any pretense that a federal Exchange is in some sense also established by a State. Reading the rest of the Act also confirms that, as rele- vant here, there are only two ways to set up an Exchange in a State: establishment by a State and establishment by the Secretary. §§18031(b), 18041(c). So saying that an Exchange established by the Federal Government is es- tablished by the State goes beyond giving words bizarre meanings; it leaves the limiting phrase by the State with no operative effect at all. That is a stark violation of the elementary principle that requires an interpreter to give
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effect, if possible, to every clause and word of a statute. Montclair v. Ramsdell, 107 U. S. 147, 152 (1883). In weighing this argument, it is well to remember the differ- ence between giving a term a meaning that duplicates another part of the law, and giving a term no meaning at all. Lawmakers sometimes repeat themselveswhether out of a desire to add emphasis, a sense of belt-and- suspenders caution, or a lawyerly penchant for doublets (aid and abet, cease and desist, null and void). Lawmak- ers do not, however, tend to use terms that have no oper- ation at all. Marbury v. Madison, 1 Cranch 137, 174 (1803). So while the rule against treating a term as a redundancy is far from categorical, the rule against treat- ing it as a nullity is as close to absolute as interpretive principles get. The Courts reading does not merely give by the State a duplicative effect; it causes the phrase to have no effect whatever. Making matters worse, the reader of the whole Act will come across a number of provisions beyond §36B that refer to the establishment of Exchanges by States. Adopting the Courts interpretation means nullifying the term by the State not just once, but again and again throughout the Act. Consider for the moment only those parts of the Act that mention an Exchange established by the State in connection with tax credits: The formula for calculating the amount of the tax credit, as already explained, twice mentions an Ex- change established by the State. 26 U. S. C. §36B(b)(2)(A), (c)(2)(A)(i). The Act directs States to screen children for eligibility for [tax credits] under section 36B and for any other assistance or subsidies available for coverage ob- tained through an Exchange established by the State. 42 U. S. C. §1396w3(b)(1)(B)(C). The Act requires an Exchange established by the
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State to use a secure electronic interface to deter- mine eligibility for (among other things) tax credits. §1396w3(b)(1)(D). The Act authorizes an Exchange established by the State to make arrangements under which other state agencies determine whether a State resident is eligi- ble for [tax credits] under section 36B. §1396w 3(b)(2). The Act directs States to operate Web sites that allow anyone who is eligible to receive [tax credits] under section 36B to compare insurance plans offered through an Exchange established by the State. §1396w3(b)(4). One of the Acts provisions addresses the enrollment of certain children in health plans offered through an Exchange established by the State and then dis- cusses the eligibility of these children for tax credits. §1397ee(d)(3)(B). It is bad enough for a court to cross out by the State once. But seven times? Congress did not, by the way, repeat Exchange estab- lished by the State under [§18031] by rote throughout the Act. Quite the contrary, clause after clause of the law uses a more general term such as Exchange or Exchange established under [§18031]. See, e.g., 42 U. S. C. §§18031(k), 18033; 26 U. S. C. §6055. It is common sense that any speaker who says Exchange some of the time, but Exchange established by the State the rest of the time, probably means something by the contrast. Equating establishment by the State with establish- ment by the Federal Government makes nonsense of other parts of the Act. The Act requires States to ensure (on pain of losing Medicaid funding) that any Exchange established by the State uses a secure electronic inter-
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face to determine an individuals eligibility for various benefits (including tax credits). 42 U. S. C. §1396w 3(b)(1)(D). How could a State control the type of electronic interface used by a federal Exchange? The Act allows a State to control contracting decisions made by an Ex- change established by the State. §18031(f)(3). Why would a State get to control the contracting decisions of a federal Exchange? The Act also provides Assistance to States to establish American Health Benefit Exchanges and directs the Secretary to renew this funding if the State . . . is making progress . . . toward . . . establishing an Exchange. §18031(a). Does a State that refuses to set up an Exchange still receive this funding, on the premise that Exchanges established by the Federal Government are really established by States? It is presumably in order to avoid these questions that the Court concludes that federal Exchanges count as state Exchanges only for purposes of the tax credits. Ante, at 13. (Contrivance, thy name is an opinion on the Affordable Care Act!) It is probably piling on to add that the Congress that wrote the Affordable Care Act knew how to equate two different types of Exchanges when it wanted to do so. The Act includes a clause providing that [a] territory that . . . establishes . . . an Exchange . . . shall be treated as a State for certain purposes. §18043(a) (emphasis added). Tellingly, it does not include a comparable clause provid- ing that the Secretary shall be treated as a State for pur- poses of §36B when she establishes an Exchange. Faced with overwhelming confirmation that Exchange established by the State means what it looks like it means, the Court comes up with argument after feeble argument to support its contrary interpretation. None of its tries comes close to establishing the implausible con- clusion that Congress used by the State to mean by the State or not by the State. The Court emphasizes that if a State does not set up an
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Exchange, the Secretary must establish such Exchange. §18041(c). It claims that the word such implies that federal and state Exchanges are the same. Ante, at 13. To see the error in this reasoning, one need only consider a parallel provision from our Constitution: The Times, Places and Manner of holding Elections for Senators and Representatives, shall be prescribed in each State by the Legislature thereof; but the Congress may at any time by Law make or alter such Regulations. Art. I, §4, cl. 1 (emphasis added). Just as the Affordable Care Act directs States to establish Exchanges while allowing the Secre- tary to establish such Exchange as a fallback, the Elec- tions Clause directs state legislatures to prescribe election regulations while allowing Congress to make such Regu- lations as a fallback. Would anybody refer to an election regulation made by Congress as a regulation prescribed by the state legislature? Would anybody say that a fed- eral election law and a state election law are in all re- spects equivalent? Of course not. The word such does not help the Court one whit. The Courts argument also overlooks the rudimentary principle that a specific provi- sion governs a general one. Even if it were true that the term such Exchange in §18041(c) implies that federal and state Exchanges are the same in general, the term established by the State in §36B makes plain that they differ when it comes to tax credits in particular. The Courts next bit of interpretive jiggery-pokery in- volves other parts of the Act that purportedly presuppose the availability of tax credits on both federal and state Exchanges. Ante, at 1314. It is curious that the Court is willing to subordinate the express words of the section that grants tax credits to the mere implications of other provisions with only tangential connections to tax credits. One would think that interpretation would work the other way around. In any event, each of the provisions men- tioned by the Court is perfectly consistent with limiting
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tax credits to state Exchanges. One of them says that the minimum functions of an Exchange include (alongside several tasks that have nothing to do with tax credits) setting up an electronic calculator that shows the actual cost of coverage after the application of any premium tax credit. 42 U. S. C. §18031(d)(4)(G). What stops a federal Exchanges electronic calculator from telling a customer that his tax credit is zero? Another provision requires an Exchanges outreach program to educate the public about health plans, to facilitate enrollment, and to distribute fair and impartial information about enrollment and the availability of premium tax credits. §18031(i)(3)(B). What stops a federal Exchanges outreach program from fairly and impartially telling customers that no tax credits are available? A third provision requires an Exchange to report information about each insurance plan sold including level of coverage, premium, name of the insured, and amount of any advance payment of the tax credit. 26 U. S. C. §36B(f)(3). What stops a federal Exchanges report from confirming that no tax credits have been paid out? The Court persists that these provisions would make little sense if no tax credits were available on federal Exchanges. Ante, at 14. Even if that observation were true, it would show only oddity, not ambiguity. Laws often include unusual or mismatched provisions. The Affordable Care Act spans 900 pages; it would be amazing if its provisions all lined up perfectly with each other. This Court does not revise legislation . . . just because the text as written creates an apparent anomaly. Michigan v. Bay Mills Indian Community, 572 U. S. , (2014) (slip op., at 10). At any rate, the provisions cited by the Court are not particularly unusual. Each requires an Exchange to perform a standardized series of tasks, some aspects of which relate in some way to tax credits. It is entirely natural for slight mismatches to occur when, as
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here, lawmakers draft a single statutory provision to cover different kinds of situations. Robers v. United States, 572 U. S. , (2014) (slip op., at 4). Lawmak- ers need not, and often do not, write extra language specifically exempting, phrase by phrase, applications in respect to which a portion of a phrase is not needed. Ibid. Roaming even farther afield from §36B, the Court turns to the Acts provisions about qualified individuals. Ante, at 1011. Qualified individuals receive favored treatment on Exchanges, although customers who are not qualified individuals may also shop there. See Halbig v. Burwell, 758 F. 3d 390, 404405 (CADC 2014). The Court claims that the Act must equate federal and state establishment of Exchanges when it defines a qualified individual as someone who (among other things) lives in the State that established the Exchange, 42 U. S. C. §18032(f)(1)(A). Otherwise, the Court says, there would be no qualified individuals on federal Exchanges, contradicting (for ex- ample) the provision requiring every Exchange to take the interests of qualified individuals into account when selecting health plans. Ante, at 11 (quoting §18031(e)(1)(b)). Pure applesauce. Imagine that a univer- sity sends around a bulletin reminding every professor to take the interests of graduate students into account when setting office hours, but that some professors teach only undergraduates. Would anybody reason that the bulletin implicitly presupposes that every professor has graduate students, so that graduate students must really mean graduate or undergraduate students? Surely not. Just as one naturally reads instructions about graduate students to be inapplicable to the extent a par- ticular professor has no such students, so too would one naturally read instructions about qualified individuals to be inapplicable to the extent a particular Exchange has no such individuals. There is no need to rewrite the term State that established the Exchange in the definition of
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qualified individual, much less a need to rewrite the separate term Exchange established by the State in a separate part of the Act. Least convincing of all, however, is the Courts attempt to uncover support for its interpretation in the structure of Section 36B itself. Ante, at 19. The Court finds it strange that Congress limited the tax credit to state Ex- changes in the formula for calculating the amount of the credit, rather than in the provision defining the range of taxpayers eligible for the credit. Had the Court bothered to look at the rest of the Tax Code, it would have seen that the structure it finds strange is in fact quite common. Consider, for example, the many provisions that initially make taxpayers of all incomes eligible for a tax credit, only to provide later that the amount of the credit is zero if the taxpayers income exceeds a specified threshold. See, e.g., 26 U. S. C. §24 (child tax credit); §32 (earned-income tax credit); §36 (first-time-homebuyer tax credit). Or consider, for an even closer parallel, a neighboring provision that initially makes taxpayers of all States eligible for a credit, only to provide later that the amount of the credit may be zero if the taxpayers State does not satisfy certain re- quirements. See §35 (health-insurance-costs tax credit). One begins to get the sense that the Courts insistence on reading things in context applies to established by the State, but to nothing else. For what it is worth, lawmakers usually draft tax-credit provisions the way they doi.e., the way they drafted §36Bbecause the mechanics of the credit require it. Many Americans move to new States in the middle of the year. Mentioning state Exchanges in the definition of coverage monthrather than (as the Court proposes) in the provisions concerning taxpayers eligibility for the creditaccounts for taxpayers who live in a State with a state Exchange for a part of the year, but a State with a federal Exchange for the rest of the year. In addition,
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§36B awards a credit with respect to insurance plans which cover the taxpayer, the taxpayers spouse, or any dependent . . . of the taxpayer and which were enrolled in through an Exchange established by the State. §36B(b)(2)(A) (emphasis added). If Congress had men- tioned state Exchanges in the provisions discussing tax- payers eligibility for the credit, a taxpayer who buys insurance from a federal Exchange would get no money, even if he has a spouse or dependent who buys insurance from a state Exchangesay a child attending college in a different State. It thus makes perfect sense for Exchange established by the State to appear where it does, rather than where the Court suggests. Even if that were not so, of course, its location would not make it any less clear. The Court has not come close to presenting the compel- ling contextual case necessary to justify departing from the ordinary meaning of the terms of the law. Quite the contrary, context only underscores the outlandishness of the Courts interpretation. Reading the Act as a whole leaves no doubt about the matter: Exchange established by the State means what it looks like it means. III For its next defense of the indefensible, the Court turns to the Affordable Care Acts design and purposes. As relevant here, the Act makes three major reforms. The guaranteed-issue and community-rating requirements prohibit insurers from considering a customers health when deciding whether to sell insurance and how much to charge, 42 U. S. C. §§300gg, 300gg1; its famous individ- ual mandate requires everyone to maintain insurance coverage or to pay what the Act calls a penalty, 26 U. S. C. §5000A(b)(1), and what we have nonetheless called a tax, see National Federation of Independent Busi- ness v. Sebelius, 567 U. S. , (2012) (slip op., at 39); and its tax credits help make insurance more affordable.
Cite as: 576 U. S. (2015) 13
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The Court reasons that Congress intended these three reforms to work together to expand insurance coverage; and because the first two apply in every State, so must the third. Ante, at 16. This reasoning suffers from no shortage of flaws. To begin with, even the most formidable argument concern- ing the statutes purposes could not overcome the clarity [of] the statutes text. Kloeckner v. Solis, 568 U. S. , , n. 4 (2012) (slip op., at 14, n. 4). Statutory design and purpose matter only to the extent they help clarify an otherwise ambiguous provision. Could anyone maintain with a straight face that §36B is unclear? To mention just the highlights, the Courts interpretation clashes with a statutory definition, renders words inoperative in at least seven separate provisions of the Act, overlooks the con- trast between provisions that say Exchange and those that say Exchange established by the State, gives the same phrase one meaning for purposes of tax credits but an entirely different meaning for other purposes, and (let us not forget) contradicts the ordinary meaning of the words Congress used. On the other side of the ledger, the Court has come up with nothing more than a general provision that turns out to be controlled by a specific one, a handful of clauses that are consistent with either under- standing of establishment by the State, and a resemblance between the tax-credit provision and the rest of the Tax Code. If that is all it takes to make something ambiguous, everything is ambiguous. Having gone wrong in consulting statutory purpose at all, the Court goes wrong again in analyzing it. The pur- poses of a law must be collected chiefly from its words, not from extrinsic circumstances. Sturges v. Crown- inshield, 4 Wheat. 122, 202 (1819) (Marshall, C. J.). Only by concentrating on the laws terms can a judge hope to uncover the scheme of the statute, rather than some other scheme that the judge thinks desirable. Like it or not, the
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express terms of the Affordable Care Act make only two of the three reforms mentioned by the Court applicable in States that do not establish Exchanges. It is perfectly possible for them to operate independently of tax credits. The guaranteed-issue and community-rating requirements continue to ensure that insurance companies treat all customers the same no matter their health, and the indi- vidual mandate continues to encourage people to maintain coverage, lest they be taxed. The Court protests that without the tax credits, the number of people covered by the individual mandate shrinks, and without a broadly applicable individual mandate the guaranteed-issue and community-rating requirements would destabilize the individual insurance market. Ante, at 15. If true, these projections would show only that the statutory scheme contains a flaw; they would not show that the statute means the opposite of what it says. Moreover, it is a flaw that appeared as well in other parts of the Act. A different title established a long-term-care insurance program with guaranteed-issue and community-rating requirements, but without an individual mandate or subsidies. §§80018002, 124 Stat. 828847 (2010). This program never came into effect only because Congress, in response to actuarial analyses pre- dicting that the [program] would be fiscally unsustainable, repealed the provision in 2013. Halbig, 758 F. 3d, at 410. How could the Court say that Congress would never dream of combining guaranteed-issue and community- rating requirements with a narrow individual mandate, when it combined those requirements with no individual mandate in the context of long-term-care insurance? Similarly, the Department of Health and Human Ser- vices originally interpreted the Act to impose guaranteed- issue and community-rating requirements in the Federal Territories, even though the Act plainly does not make the individual mandate applicable there. Ibid.; see 26 U. S. C.
Cite as: 576 U. S. (2015) 15
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§5000A(f)(4); 42 U. S. C. §201(f). This combination, pre- dictably, [threw] individual insurance markets in the territories into turmoil. Halbig, supra, at 410. Respond- ing to complaints from the Territories, the Department at first insisted that it had no statutory authority to ad- dress the problem and suggested that the Territories seek legislative relief from Congress instead. Letter from G. Cohen, Director of the Center for Consumer Information and Insurance Oversight, to S. Igisomar, Secretary of Commerce of the Commonwealth of Northern Mariana Islands (July 12, 2013). The Department changed its mind a year later, after what it described as a careful review of [the] situation and the relevant statutory lan- guage. Letter from M. Tavenner, Administrator of the Centers for Medicare and Medicaid Services, to G. Francis, Insurance Commissioner of the Virgin Islands (July 16, 2014). How could the Court pronounce it implausible for Congress to have tolerated instability in insurance mar- kets in States with federal Exchanges, ante, at 17, when even the Government maintained until recently that Congress did exactly that in American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands? Compounding its errors, the Court forgets that it is no more appropriate to consider one of a statutes purposes in isolation than it is to consider one of its words that way. No law pursues just one purpose at all costs, and no statu- tory scheme encompasses just one element. Most relevant here, the Affordable Care Act displays a congressional preference for state participation in the establishment of Exchanges: Each State gets the first opportunity to set up its Exchange, 42 U. S. C. §18031(b); States that take up the opportunity receive federal funding for activities . . . related to establishing an Exchange, §18031(a)(3); and the Secretary may establish an Exchange in a State only as a fallback, §18041(c). But setting up and running an
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Exchange involve significant burdensmeeting strict deadlines, §18041(b), implementing requirements related to the offering of insurance plans, §18031(d)(4), setting up outreach programs, §18031(i), and ensuring that the Exchange is self-sustaining by 2015, §18031(d)(5)(A). A State would have much less reason to take on these bur- dens if its citizens could receive tax credits no matter who establishes its Exchange. (Now that the Internal Revenue Service has interpreted §36B to authorize tax credits everywhere, by the way, 34 States have failed to set up their own Exchanges. Ante, at 6.) So even if making credits available on all Exchanges advances the goal of improving healthcare markets, it frustrates the goal of encouraging state involvement in the implementation of the Act. This is what justifies going out of our way to read established by the State to mean established by the State or not established by the State? Worst of all for the repute of todays decision, the Courts reasoning is largely self-defeating. The Court predicts that making tax credits unavailable in States that do not set up their own Exchanges would cause disastrous economic consequences there. If that is so, however, wouldnt one expect States to react by setting up their own Exchanges? And wouldnt that outcome satisfy two of the Acts goals rather than just one: enabling the Acts reforms to work and promoting state involvement in the Acts implementation? The Court protests that the very exist- ence of a federal fallback shows that Congress expected that some States might fail to set up their own Exchanges. Ante, at 19. So it does. It does not show, however, that Congress expected the number of recalcitrant States to be particularly large. The more accurate the Courts dire economic predictions, the smaller that number is likely to be. That reality destroys the Courts pretense that apply- ing the law as written would imperil the viability of the entire Affordable Care Act. Ante, at 20. All in all, the
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Courts arguments about the laws purpose and design are no more convincing than its arguments about context. IV Perhaps sensing the dismal failure of its efforts to show that established by the State means established by the State or the Federal Government, the Court tries to palm off the pertinent statutory phrase as inartful drafting. Ante, at 14. This Court, however, has no free-floating power to rescue Congress from its drafting errors. Lamie v. United States Trustee, 540 U. S. 526, 542 (2004) (internal quotation marks omitted). Only when it is pa- tently obvious to a reasonable reader that a drafting mis- take has occurred may a court correct the mistake. The occurrence of a misprint may be apparent from the face of the law, as it is where the Affordable Care Act creates three separate Section 1563s. Ante, at 14. But the Court does not pretend that there is any such indication of a drafting error on the face of §36B. The occurrence of a misprint may also be apparent because a provision decrees an absurd resulta consequence so monstrous, that all mankind would, without hesitation, unite in rejecting the application. Sturges, 4 Wheat., at 203. But §36B does not come remotely close to satisfying that demanding standard. It is entirely plausible that tax credits were restricted to state Exchanges deliberatelyfor example, in order to encourage States to establish their own Ex- changes. We therefore have no authority to dismiss the terms of the law as a drafting fumble. Let us not forget that the term Exchange established by the State appears twice in §36B and five more times in other parts of the Act that mention tax credits. What are the odds, do you think, that the same slip of the pen oc- curred in seven separate places? No provision of the Act none at allcontradicts the limitation of tax credits to state Exchanges. And as I have already explained, uses of
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the term Exchange established by the State beyond the context of tax credits look anything but accidental. Supra, at 6. If there was a mistake here, context suggests it was a substantive mistake in designing this part of the law, not a technical mistake in transcribing it. V The Courts decision reflects the philosophy that judges should endure whatever interpretive distortions it takes in order to correct a supposed flaw in the statutory machin- ery. That philosophy ignores the American peoples deci- sion to give Congress [a]ll legislative Powers enumerated in the Constitution. Art. I, §1. They made Congress, not this Court, responsible for both making laws and mending them. This Court holds only the judicial powerthe power to pronounce the law as Congress has enacted it. We lack the prerogative to repair laws that do not work out in practice, just as the people lack the ability to throw us out of office if they dislike the solutions we concoct. We must always remember, therefore, that [o]ur task is to apply the text, not to improve upon it. Pavelic & LeFlore v. Marvel Entertainment Group, Div. of Cadence Indus- tries Corp., 493 U. S. 120, 126 (1989). Trying to make its judge-empowering approach seem respectful of congressional authority, the Court asserts that its decision merely ensures that the Affordable Care Act operates the way Congress meant [it] to operate. Ante, at 17. First of all, what makes the Court so sure that Congress meant tax credits to be available every- where? Our only evidence of what Congress meant comes from the terms of the law, and those terms show beyond all question that tax credits are available only on state Exchanges. More importantly, the Court forgets that ours is a government of laws and not of men. That means we are governed by the terms of our laws, not by the unen- acted will of our lawmakers. If Congress enacted into law
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something different from what it intended, then it should amend the statute to conform to its intent. Lamie, supra, at 542. In the meantime, this Court has no roving license . . . to disregard clear language simply on the view that . . . Congress must have intended something broader. Bay Mills, 572 U. S., at (slip op., at 11). Even less defensible, if possible, is the Courts claim that its interpretive approach is justified because this Act does not reflect the type of care and deliberation that one might expect of such significant legislation. Ante, at 14 15. It is not our place to judge the quality of the care and deliberation that went into this or any other law. A law enacted by voice vote with no deliberation whatever is fully as binding upon us as one enacted after years of study, months of committee hearings, and weeks of de- bate. Much less is it our place to make everything come out right when Congress does not do its job properly. It is up to Congress to design its laws with care, and it is up to the people to hold them to account if they fail to carry out that responsibility. Rather than rewriting the law under the pretense of interpreting it, the Court should have left it to Congress to decide what to do about the Acts limitation of tax credits to state Exchanges. If Congress values above everything else the Acts applicability across the country, it could make tax credits available in every Exchange. If it prizes state involvement in the Acts implementation, it could continue to limit tax credits to state Exchanges while taking other steps to mitigate the economic consequences predicted by the Court. If Congress wants to accommo- date both goals, it could make tax credits available every- where while offering new incentives for States to set up their own Exchanges. And if Congress thinks that the present design of the Act works well enough, it could do nothing. Congress could also do something else alto- gether, entirely abandoning the structure of the Affordable
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Care Act. The Courts insistence on making a choice that should be made by Congress both aggrandizes judicial power and encourages congressional lassitude. Just ponder the significance of the Courts decision to take matters into its own hands. The Courts revision of the law authorizes the Internal Revenue Service to spend tens of billions of dollars every year in tax credits on fed- eral Exchanges. It affects the price of insurance for mil- lions of Americans. It diminishes the participation of the States in the implementation of the Act. It vastly expands the reach of the Acts individual mandate, whose scope depends in part on the availability of credits. What a parody todays decision makes of Hamiltons assurances to the people of New York: The legislature not only com- mands the purse but prescribes the rules by which the duties and rights of every citizen are to be regulated. The judiciary, on the contrary, has no influence over . . . the purse; no direction . . . of the wealth of society, and can take no active resolution whatever. It may truly be said to have neither FORCE nor WILL but merely judgment. The Federalist No. 78, p. 465 (C. Rossiter ed. 1961). * * * Todays opinion changes the usual rules of statutory interpretation for the sake of the Affordable Care Act. That, alas, is not a novelty. In National Federation of Independent Business v. Sebelius, 567 U. S. , this Court revised major components of the statute in order to save them from unconstitutionality. The Act that Congress passed provides that every individual shall maintain insurance or else pay a penalty. 26 U. S. C. §5000A. This Court, however, saw that the Commerce Clause does not authorize a federal mandate to buy health insurance. So it rewrote the mandate-cum-penalty as a tax. 567 U. S., at (principal opinion) (slip op., at 1545). The Act that Congress passed also requires every State to
Cite as: 576 U. S. (2015) 21 SCALIA, J., dissenting accept an expansion of its Medicaid program, or else risk losing all Medicaid funding. 42 U. S. C. §1396c. This Court, however, saw that the Spending Clause does not authorize this coercive condition. So it rewrote the law to withhold only the incremental funds associated with the Medicaid expansion. 567 U. S., at (principal opinion) (slip op., at 4558). Having transformed two major parts of the law, the Court today has turned its attention to a third. The Act that Congress passed makes tax credits available only on an Exchange established by the State. This Court, however, concludes that this limi- tation would prevent the rest of the Act from working as well as hoped. So it rewrites the law to make tax credits available everywhere. We should start calling this law SCOTUScare. Perhaps the Patient Protection and Affordable Care Act will attain the enduring status of the Social Security Act or the Taft-Hartley Act; perhaps not. But this Courts two decisions on the Act will surely be remembered through the years. The somersaults of statutory interpretation they have performed (penalty means tax, further [Medi- caid] payments to the State means only incremental Medicaid payments to the State, established by the State means not established by the State) will be cited by liti- gants endlessly, to the confusion of honest jurisprudence. And the cases 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. I dissent.
It’s unanimous: all agree the law does not authorize subsidies for a federal exchange!
However they disagree on what to do about that...
We cannot depend on the SCOTUS to overturn bad laws.
The ultimate responsibility rests with the voters who elect these politicians to Washington to begin with.
Like saying bank robbery is not legal, but it’s ok?
We cannot depend on the SCOTUS to overturn bad laws.
Just look at the Dredd Scott case... we could never rely on the supreme court to throw out a bad law... EVER!
And Dredd Scott and it’s repercussions eventually became one of the seeds that the civil war grew out of...
Impeach Roberts!!
These two Supreme Court rulings on Obamacare are far more harmful than Obamacare itself.
While the “Patient Protection and Affordable Care Act” will stifle medical advancement to such an extent that medical research may for all practical purposes grind to a halt (or more accurately, focus only on controlling costs and not on saving or improving lives), that damage is limited to only one aspect of our lives.
The precedent that the federal government has the authority to order us to engage in commerce against our will is far worse. We must buy an unwanted product (clearly unwanted, or purchase would not need to be mandatory) at the price set by the private entities in our state, whether or not we want that product, not as a condition of driving on state roads but as a condition of breathing. This is a horrendous precedent for everyone who does not engage in crony capitalism. Freedom is dead.
It gets worse. Under the first Obamacare Supreme Court opinion, Obamacare is a tax despite the clear and unanimous declaration by supporters that it is not a tax and the absence of any indication in the statute that it was intended to be a tax. Under the second Obamacare Supreme Court opinion, “Exchange established by the State” means “Exchange established by the State or the Federal Government”, an absurd and illogical construction. The rule of law is dead.
Essentially, we are no longer a constitutional republic with limited government. We now have a king, and the king has almost unlimited unilateral power to make or repeal law by decree or equivalently by issuing regulations.
To put it mildly, I am now beyond the point where I was worried about America’s survival as a free country, and I will now structure my life under the assumption that the free country I knew no longer exists in any meaningful sense.
Shopping list: gold, silver, lead, brass, food, medicine, soap, . . .
Congress is a joke as the SCOTUS will simply write the laws as they please. This decision will go down as the worst since Dred Scott.
I believe the ultimate goal beyond a complete worldwide economic collapse with individual tax rates approaching 60% -70% in the USA alone within 5 years, is a general downward trend in world population to about 50% of what it is currently.
I probably won't live to see much more than the beginning of it.
The to say I saw this coming. But I saw this coming. The sad news? The GOP is probably happier about this than anyone else. The new function of the Supreme Court? Decide what law A majority of them like or dislike amd uphold it. The shock here? I thought Roberts would twist himself into a knot to rationalize this. Nah, now they are just blatantly saying, if we like a law, we uphold it and you can eat it.
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