High Court To Rule On Subsidies For Affordable Care Act

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(From NPR) – The Supreme Court is set to rule on an important case involving subsidies for individuals who have purchased health insurance under the provisions of the Affordable Care Act.

Plaintiffs have argued that only those states that have set up their own exchanges for the purchase of health care insurance are entitled to give subsidies to lower-income people. States that let the federal government set up their exchanges for them, they contend, may not accept the federal tax credits that subsidize those eligible in state-run exchanges. The administration argues that the intent of the legislators was clear, whatever the exact wording of the 2010 Affordable Care Act, and that all exchanges are eligible for the subsidies.

If the court rules for the plaintiffs, subsidies could go away for more than 6 million current recipients, although the timetable for their losing insurance is somewhat uncertain. Congress would be under pressure to act.

Taking this many people out of the system would also affect the private health insurance market and the amount that people pay in insurance premiums. The degree of impact would depend on how sweeping the justices’ ruling is. But it could affect individuals, small business, large business, the insurance industry, doctors and hospitals.

 

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