The Supreme Court’s newest healthcare ruling on Obamacare is expected to be issued any day, and the justices' decision in King v. Burwell will ultimately determine the future of the Affordable Care Act.
The Supreme Court will have to decide whether low-income residents who purchased Obamacare in the federal marketplace in more than two-thirds of states are entitled to
subsidized health insurance, according to The Wall Street Journal. According to the law, low-income residents are entitled to tax subsidies only on insurance packages bought from state marketplaces. However, in an act of Obamacare defiance, 34 states never established state marketplaces, so the IRS extended the subsidy requirements to the federal marketplace, The Journal noted.
Although it is not uncommon for federal agencies, including the IRS, to draft regulations to move around major legislation, if the court rules that residents in states without their own marketplaces are not entitled to subsidies, individuals who bought insurance through Healthcare.gov will lose their insurance subsidies until their state creates its own marketplace.
The problem is that without subsidies, many of those who enrolled in Obamacare may drop their insurance plans, driving the price of insurance up. More Americans who chose not to enroll in Obamacare would also no longer face penalties because the Affordable Care Act would no longer offer affordable insurance for all.
If the justices decide that the tax credit that has already been given to over six million Americans cannot stay, it is anticipated that the employer mandate that requires business to provide health insurance for their employees or to pay a penalty, will no longer hold much bearing, explains The Wall Street Journal.
Based upon the March oral arguments in the case, it appears that the court will uphold the legality of the IRS’ subsidies even if states do not produce their own
insurance marketplaces, The Hill reported. If the state does prevail in King v. Burwell, Americans who have already purchased insurance through Healthcare.gov will continue to be able to afford their insurance and Obamacare will continue to facilitate the American healthcare system.
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