Health insurance subsidies could vanish for many people in the US

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Supreme Court ruling could put an end to insurance subsidies for those living in states with exchanges managed by the federal government

The Urban Institute has released an analysis concerning those that will be most affected by a Supreme Court ruling regarding subsidies provided under the Affordable Care Act. The Supreme Court is expected to rule on a matter regarding whether or not those in states that do not run their own health insurance exchange can receive subsidies. In the case of King v. Burwell, the availability of these subsidies is being called into question.

States that do not operate their own exchange could be affected by Supreme Court ruling

Depending on the ruling of the Supreme Court, people living in more than 30 states could lose access to health insurance subsidies. These states do not manage their own insurance exchanges, having decided to relinquish this responsibility to the federal government. These subsidies are offered through the Affordable Care Act and are meant to ensure that insurance coverage is more affordable and accessible to a wider range of people.

Majority of those receiving coverage through an exchange also receive subsidies

cost of health insurance subsidiesAccording to the analysis from the Urban Institute, an estimated two-thirds of those currently receiving subsidies for their health insurance could drop their coverage completely. This is because they would be unable to afford coverage without the subsidies that they have been given. According to information from the federal government, the majority of those receiving coverage through an exchange marketplace are also receiving subsidies. Without this financial aid, many consumers could lose their insurance coverage because of its high costs.

State-run exchanges will not be affected by Supreme Court ruling

The analysis from the Urban Institute notes that the majority of those that would be affected by a ruling from the Supreme Court live in the South and are of middle age. The majority of these people are also employed, but do not opt to receive coverage from their employer, or their employer does not offer coverage at this time. Those living in states that manage their own health insurance exchanges are not expected to be affected by a ruling from the Supreme Court on this matter.

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