Wednesday, February 11, 2015

Major Obamacare selling point could get wiped out

In a final push to get Americans to sign up for Obamacare coverage, the Obama administration is dangling a carrot: government subsidies many people can use to help purchase plans. - PAIGE WINFIELD CUNNINGHAM/Washington Examiner

But those subsidies could be erased this summer.

In three weeks, the Supreme Court will hear the case King v. Burwell, challenging the legality of awarding the subsidies to those buying coverage via healthcare.gov. The justices’ decision — expected in June — could result in the subsidies being blocked from residents in the 37 states using the federal-run marketplace.

...King v. Burwell hinges on part of the law that refers to the subsidies flowing through “an exchange established by the state.” That means it’s illegal to award the subsidies through the federal-run exchanges, according to the challengers in the closely-watched case.

If the Supreme Court sides with them, it won’t just be the premium subsidies that are blocked. There are also low-income subsidies to lower the costs for doctor or hospital visits. They, too, would be blocked from the states using healthcare.gov.

So, besides having to pay a higher monthly premium, low-income Americans would also have to cover the full cost of their plan’s deductible and co-pays.