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IFA RESPONDS TO KING V. BURWELL DECISION, HIGHLIGHTS OPPORTUNITIES FOR IMPROVEMENTS AS COURT UPHOLDS HEALTH CARE SUBSIDIES

WASHINGTON, June 25, 2015 – Following a 6-3 decision by the U.S. Supreme Court affirming the nationwide validity of individual tax subsidies for the purchase of health insurance plans under the Affordable Care Act (ACA), the International Franchise Association (IFA) called on Congress to pass legislation to ease the regulatory burdens placed on franchise small business owners by the law and help the implementation of the provisions of the ACA’s employer mandate.

“Today’s majority decision by the U.S. Supreme Court on the availability of individual subsidies in the Affordable Care Act also rightly highlights the statute’s many flaws,” said IFA President & CEO Steve Caldeira, CFE. “The law suffers from many ill-considered and poorly drafted provisions that negatively impact franchise small business owners and the millions of workers they employ. Now that the individual subsidy issue has been settled by the Court, we look forward to continue working with Congress to more aggressively advance legislation that addresses the numerous remaining issues created by the ACA, such as restoring the full-time 40-hour work week and relieving the regulatory burdens placed particularly on small employers as defined by the law.”

Congress has already taken important steps to address the work week issue. H.R. 30, the Save American Workers Act, which passed the House of Representatives in January, would change the definition of a full-time employee in the ACA’s employer mandate from 30 hours to the industry-standard of 40 hours per week. Companion legislation, S. 30, the Forty Hours Is Full Time Act, has been introduced in the Senate by Sens. Susan Collins (R-ME), Joe Donnelly (D-IN), Lisa Murkowski (R-AK), and Joe Manchin (D-WV). Additional legislation to streamline employer reporting requirements and eliminate erroneous subsidies to workers has been introduced in the House, while another measure to prevent the harmful expansion of the “small group” market is also being considered.

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About the International Franchise Association

Celebrating 55 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 780,000 franchise establishments that support nearly 8.9 million direct jobs, $890 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.

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