US Supreme Court upholds key Obamacare insurance subsidies

US President Barack Obama delivers remarks after the Supreme Court ruled 6-3 to uphold the nationwide availability of tax subsidies that are crucial to the implementation of the Affordable Care Act, in the Rose Garden at the White House in Washington June 25, 2015.[Photo/Agencies]

The question before the justices was whether a four-word phrase in the expansive law saying subsidies are available to those buying insurance on exchanges "established by the state" has been correctly interpreted by the administration to allow subsidies to be available nationwide

Roberts wrote that although the conservative challengers' arguments about the plain meaning of the statute were "strong," 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."

Justice Antonin Scalia took the relatively rare step of reading a summary of his dissenting opinion from the bench.

In his reading of the statute, "it is hard to come up with a reason to use these words other than the purpose of limiting credits to state exchanges," Scalia said.

The ruling will come as a major relief to Obama as he seeks to ensure that his legacy legislative achievement is implemented effectively and survives political and legal attacks before he leaves office in early 2017.

The current system will remain in place, with subsidies available in all 50 states. If the challengers had won, at least 6.4 million people in at least 34 states would have lost subsidies that help low- and moderate-income people afford private health insurance. The average subsidy is $272 per month.

A loss for the Obama administration also could have had a broader impact on insurance markets by deterring younger, healthier people from buying health insurance, which would lead to premiums rising for older, less healthy people who need healthcare most, according to analysts.