Friday, November 14, 2014

"Peak Obamacare" Will Exchanges End With A Bang Or A Whimper?

The U.S. Supreme Court has agreed to hear King v. Burwell, an important case about Obamacare’s subsidies (tax credits) to health insurers. Plaintiffs argue that in the 36 states with federal Obamacare exchanges, subsidies cannot be paid legally. If no subsidies can be paid, neither the individual mandate to buy health insurance nor the employer mandate to offer insurance can be enforced.

Few people would voluntarily buy health insurance from an Obamacare exchange if health insurers on the exchanges did not receive subsidies to enroll people. The premiums would be too high otherwise. Experts expect that the Supreme Court might decide on King v. Burwell in July, in which case Obamacare will end with a bang.

However, even if the Supreme Court allows the Administration to continue to unilaterally re-write the law, Obamacare’s exchanges – both state and federal – will likely end with a whimper in 2015 or soon after. Just look at how quickly the Administration began to roll back expectations for enrollment, immediately after the election.

Read the entire column at Forbes.

No comments: