For many Americans President Obama’s Affordable Care Act meant taking more money out of their pocket for their premiums, while the only ones that did benefit from the presidential health care overhaul where people eligible for federal subsidies.
But the Supreme Court may just change that as well in June when it is expected to decide whether about 7.5 millions of Americans would continue to receive affordable health care coverage through federal tax credits.
If subsidies are invalidated, people that are currently receiving them because of their low income may have to pay out-of-pocket money for their health care plans just like the unsubsidized do.
According to the National Bureau of Economic Research, the cost of premiums for those that didn’t benefit from federal subsidies nearly doubled after the health care reform was enacted, from 14 percent to nearly 28 percent.
The King v. Burwell lawsuit that is currently pending for a solution at the Supreme Court claims that Obamacare does not offer subsidies for those insured through the federal exchange.
But in case subsidies are struck down, Republicans promised that they would look for an alternate solution that would maintain subsidies two more years.
The White House seemingly may reach a deadlock in June since President Obama announced that there was no “plan B” if the high court upholds the lawsuit. GOP leaders hope that the ruling from the Supreme Court may give them the green light to replace ACA or at least amend it.
However, there’s a bright side too, Obamacare critics say. If plaintiffs win the lawsuit, millions of people would be free from compulsory health care coverage and incumbent penalties if they fail to buy a health-care plan. The current legislation exempts Americans from compulsory health care if they cannot afford one.
The federal subsidies for health care plans purchased via HealthCare.gov now cover more than 70 percent of the monthly health-insurance premiums that those eligible have to pay. The subsidized pay on average about $100 every month. So, if the Supreme Court strikes down their subsidies that sum would more than triple. However, the ruling will not affect all states. There are 13 states that run their own exchanges and have their own rules.
But in 37 states, where nearly 90 percent of those who purchased a health care plan via the federal exchange are eligible for subsidies, the cost of premiums would jump by 47 percent. Additionally, 70 percent of the ones who currently benefit from federal tax credits will un-enroll from any health care plan because it is unaffordable. In other words, about 8 million people will remain uninsured because the health care coverage becomes too expensive overnight.
Image Source: Frontpage Mag
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