Obamacare subsidies upheld in US Supreme Court ruling

Chief Justice John Roberts wrote the opinion, siding with the court's liberal justices

The US Supreme Court has upheld a key portion of President Barack Obama's healthcare law in a 6-3 decision.

The court ruled the law as a whole made subsidies available for people in all 50 states, not just those who bought insurance through a state exchange.

The Thursday's decision is major victory for the Obama administration.

"We've got more work to do, but what we're not going to do is unravel what has now been woven into the fabric of America," Mr Obama said.

The high court case was the second major challenge to the healthcare law- often known as Obamacare - since its passage.

"Congress passed the Affordable Care act to improve health insurance markets, not to destroy them," Chief Justice John Roberts wrote in the opinion.

If the law was overturned, 6.4 million Americans would have been at risk of losing aid.

The 2010 law, often known as Obamacare, set up a federally run insurance exchange where Americans who were not covered by employers or other governmental could buy health insurance.

Meet the Supremes

The US Supreme Court is one of the oldest constitutional review courts. Decisions made by the Supreme Court can overturn federal or state laws, if the justices find they are unconstitutional.

That power has led the court to end segregation in schools, legalise interracial marriage, dramatically change how political campaigns are financed and once effectively chose a president.

The court is made up of nine justices nominated by the president and confirmed by the Senate. They have life tenure once confirmed - other countries' high courts have forced retirement ages.

The US high court is now 1/3 female, after adding its first woman justice in 1981. There is also one Hispanic justice and one African-American justice.

Meet the Supremes: Who are the US Supreme Court Justices

Opponents argue that a phrase included in the law, "established by the state," demonstrated that the healthcare subsidies should have only been available for people in states that set up exchanges.

However, most Americans receiving subsidies purchase healthcare through the federal exchange after many states decided not to set up their own marketplaces.

The Obama administration argued that was a too-narrow reading of the law, which spans near 1,000 pages, and the rest of the legislation makes clear subsidies are intended for those who meet income requirements, regardless of which exchange insurance was purchased from.

Justice Roberts voted with liberal colleagues in support of the law. He was also the key vote to uphold it in a 2012 case. Justice Anthony Kennedy dissented in 2012, but sided with the majority on Thursday.

Justice Anthony Scalia's wrote in his dissent that the Supreme Court is setting a precedent of favouring some laws over others.

"We should start calling this law SCOTUScare" Justice Scalia's wrote. "Today's interpretation is not merely unnatural; it is unheard of."

The upholding of the law cements President Obama's biggest legislative victory.

Republican Congressional leader Steve Scalise said said he was disappointed in the ruling and would work to have the law "repealed and replaced," echoing a near-universal Republican sentiment about the law.

"It does not change the fact that Obamacare has been a dismal failure for millions of Americans who have lost the good health care that they liked, and are paying more for the plans that they have," Mr Scalise said in statement.

Outside the Supreme Court on Thursday, people were celebratory and joyful, chanting "ACA is here to stay!" and "If you're covered and you know it clap your hands."

"Today is a good day for healthcare in America," said demonstrator Benton Strong. "I hope this is the end of the line."