Arthur J. Gallagher & Co. · NYSE:AJG
Arthur J. Gallagher & — Investor Presentation (June 2015)
11 slides from Arthur J. Gallagher &'s investor presentation, June 2015
Slide 1: United States Supreme Court Decision in King v. Burwell
United States Supreme Court Decision in King v. Burwell June, 2015 United States Supreme Court Decision in King v. Burwell COMPLIANCE CONSULTING | JUNE 2015 Agenda • Background for King v. Burwell – the “individual mandate” and the “employer mandate” under PPACA, and how they interact with premium t
Slide 2: Premium Tax Credits and the Marketplace
United States Supreme Court Decision in King v. Burwell June, 2015 Premium Tax Credits and the Marketplace • Two Pillars of PPACA – Individual Mandate – Employer Mandate • Both mandates are made possible by premium tax credits – Individual Mandate • Low‐income individuals are eligible for premium ta
Slide 3: Premium Tax Credits and the Marketplace
United States Supreme Court Decision in King v. Burwell June, 2015 Premium Tax Credits and the Marketplace • King v. Burwell – Plaintiffs argued that the text of PPACA, as drafted by Congress, only authorizes premium tax credits in states that actually established their own Marketplaces • Only 16 st
Slide 4: King v. Burwell
United States Supreme Court Decision in King v. Burwell June, 2015 Premium Tax Credits and the Marketplace – Employers can no longer be penalized for failing to offer coverage to FT employees who reside in states with a federally‐facilitated Marketplace • If individuals do not get premium tax credit
Slide 5: King v. Burwell
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • In upholding the availability of federal subsidies for individuals enrolled in coverage in either state‐run or federally‐facilitated Marketplaces, the court held that because Congress passed PPACA to improve health
Slide 6: King v. Burwell
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • The Court noted that there are three requirements to obtain premium assistance: – 1. The individual must purchase coverage through a Marketplace – 2. The Marketplace must be established by a State – 3. The Marketpla
Slide 7: King v. Burwell
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • Since the Court determine that PPACA was ambiguous, it was required to determine the meaning of the ambiguous subsidy provision by considering the “broader structure of the Act to determine whether one of the [subsi
Slide 8: King v. Burwell: Death spirals
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • Death spirals – Prior healthcare reform focused on expanding access to coverage – Several states imposed a two‐pronged insurance market reform approach aimed at expanding coverage • “Guaranteed issue” – Barring heal
Slide 9: King v. Burwell: Three-pronged approach
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • Massachusetts introduced a three‐pronged approach instead of a two‐pronged approach – Guaranteed issue and community rating – Individual mandate – Premium assistance for certain individuals • PPACA adopted a similar
Slide 10: King v. Burwell: Bottom line result
United States Supreme Court Decision in King v. Burwell June, 2015 King v. Burwell • Essentially, the Court thus found that when reading the subsidy provision within the context of the other provisions of PPACA, upholding federal subsidies only in states that run their own Marketplaces and not in st
Slide 11: Thank you!
United States Supreme Court Decision in King v. Burwell June, 2015 Resources: ajghealthcarereform.com © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 21 Thank you! The intent of this presentation is to provide you with general information regarding the
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