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Health Care Subsidies Might Be Safe Despite Court Decision

By Drew Daudelin

Posted June 15, 2015

The U.S. Supreme Court is expected to make a decision by the end of the month in King v. Burwell, a case that could take away health care subsidies in dozens of states including Indiana. The removal of federal subsidies would likely result in the loss of health care for millions of low-income recipients.

But some aren't worried. Indiana University law and health professor David Orentlicher says even if the Supreme Court ruled against the subsidies, Republicans in Congress could vote to extend them for up to a year and a half, giving them time to find a solution.

"They understand that it's not workable to pull these subsidies from people in two-thirds of the country who are gonna lose their ability to buy insurance. That's a catastrophic outcome," Orentlicher says.

The Supreme Court is looking at a small phrase within the over-900 page Affordable Care Act that implies subsidies are only available in places with a state-run marketplace.

Orentlicher says that means Congress could easily redefine how health care exchange are run.

"The simplest solution would be to say, we've got these marketplaces running in every state, so why not just have the Federal Government transfer ownership of the exchange to the state?" Orentlicher says.

The Obama administration said in March that of the 11.7 million Americans signed up for private health insurance, 86 percent received financial assistance from the federal government.

Orentlicher says if that's lost, public outcry would be too great for Congress to ignore.

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