SCOTUS To Hear Obamacare Challenge That Would Gut Exchange Subsidies
Via Bloomberg News:
The U.S. Supreme Court agreed to consider a challenge to the subsidies that are a linchpin of President Barack Obama’s health-care overhaul, accepting a case that suddenly puts the law under a new legal cloud. Two years after upholding much of the law by a single vote, the justices today said they will hear a Republican-backed appeal targeting tax credits that have helped more than 4 million people afford insurance.A ruling blocking those credits might unravel the Affordable Care Act, making other provisions ineffective and potentially destabilizing insurance markets in much of the country. The high court’s decision to hear the case comes days before the start of the law’s second open-enrollment season. A decision will come by June.More from Think Progress:
The Affordable Care Act gives states a choice whether they will set up their own health exchange where consumers can buy health insurance or whether to allow the federal government to do so for them. This lawsuit alleges that subsidies helping individuals buy health insurance are only available in exchanges run by a state, not by the feds. If it succeeds, the likely result will be a “death spiral” where higher premiums cause healthy consumers to drop out of the insurance market, which will cause higher premiums, which will cause more consumers to drop their insurance. Eventually, many states’ individual insurance markets are likely to collapse if this lawsuit prevails.The challenge could cost millions of Americans their health insurance. Just as Jesus would want.
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