ObamaCare Premiums Could Triple if Court Tosses Subsidies
Source: The Hill
The cost of healthcare premiums could rise as much 779 percent if the Supreme Court erases ObamaCare subsidies in a majority of states this year, according to a new study.
A victory for the plaintiffs in King v. Burwell would erase subsidies in 37 states using HealthCare.gov, causing premiums to spike an average of 255 percent, according to new research by the nonpartisan group Avalere Health.
Nine states, including Florida and North Carolina, would see premiums spike more than 300 percent. Alaska and Mississippi face the most damage, facing increases of 449 percent and 779 percent, respectively.
Both parties have agreed that the court case could wreak havoc on the insurance landscape. Healthcare experts have predicted a massive number of ObamaCare dropouts when people are no longer able to afford coverage.
Nearly 90 percent of people who purchased ObamaCare plans nationwide are receiving subsidies. But Dan Mendelson, founder and CEO of Avalere, said many states that stand to lose subsidies are likely to be even more worse off.
“The federal exchange generally serves low income populations in red states, so that’s where the premium increases would be concentrated,” Mendelson wrote in a statement. “If King prevails, we expect to see virtually all stakeholders aggressively seeking alternatives to ensure continuity of care.”
The study is the latest warning sign from healthcare researchers who remain fraught over the King v. Burwell case. Justices will begin arguments on the case next Wednesday and are expected to deliver a ruling in late June.
White House officials have maintained that there is no legislative fix for an adverse King v. Burwell ruling. Republicans have recently begun pitching ways to create a stopgap in which the billions of dollars in subsidies would not be immediately wiped out this June.
Filed Under: ACA/Health Reform