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Gov. Pence Stands By Not Creating State Health Exchange

A federal appeals court ruling issued today indicates the subsidies provided under the federal health exchange are invalid.

healthcare

Photo: Healthcare.gov

Two courts ordered conflicting opinions about whether subsidies through the federal health care exchange are valid.

Governor Mike Pence says he stands by his decision not to operate a state-run health insurance exchange under the Affordable Care Act after a federal appeals court ruled federal subsidies for people who bought insurance through federally-run exchanges are not valid.

Two federal appeals courts Tuesday ruled on cases involving insurance subsidies in the Affordable Care Act.  A Washington D.C. circuit court ruled that the federal government cannot provide subsidies for more than four million Americans, who purchased insurance through federally-run healthcare exchanges.

Just a few hours later, an appeals court in Virginia ruled in favor of the Obama administration.

Ultimately the Supreme Court is likely to take up the case, and until then the Obama administration says it will continue to provide the federal assistance.

Indiana University professor William Popkin says invalidating the subsidies would have an enormous impact on Indiana’s low-income population, who would no longer be required to purchase health insurance under the law.

“Without the credit, it will be so expensive, given their income level, that they will not be faced with a penalty and the price of the insurance may dissuade them, discourage them from actually buying it,” Popkin says.

But Governor Pence says he hasn’t had second thoughts about choosing not to run a state-based exchange.

“A number of states across the country that set up their exchanges have abandoned them or begun to unwind them, so I think we made the right decision in that regard,” Pence says.

Pence says he hasn’t read the court opinions and doesn’t want to comment on what the state might do if its citizens are left without the subsidies.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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  • Bob Eckert

    If those subsides are removed, the RepubliThugs may think they have won, but the people who get those subsidies VOTE and the thugs will find they have lost the Congress in 2014 and the Presidency in 2016. Karma will take care of their hateful spite once and for all and their souls will be send back to the place of all evil from which they escaped to torment the good people of the United States.

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