Health insurance subsidies are at risk in the US

cash money subsidy health insurance deductibles

Supreme Court is set to rule on a legal challenge to the Affordable Care Act

The U.S. Supreme Court is set to rule on a legal challenge that has been made against one of the Affordable Care Act’s provisions. The provision in question is one meant to provide subsidies for those seeking coverage through health insurance exchanges. These subsidies are meant to reduce the cost of insurance coverage for many people, making it possible for more people to obtain coverage. Subsidies offered for coverage found through federal exchanges may vanish due to the upcoming ruling from the Supreme Court.

Subsidies make it possible for many people to afford health insurance coverage

The federal government manages the majority of health insurance exchanges that are currently in operation in the United States. This is because many states had opted not to build their own exchanges, either because they disagreed with health care reform, or they had no interest in doing so. Other states manage their own exchanges. The federal government offers subsidies for coverage purchased through all exchanges, with these subsidies available to low-income individuals that cannot afford insurance coverage normally.

Case takes aim at subsidies offered in federal exchanges

cash money subsidy health insuranceIn the King v. Burwell case, which calls into question the legality of subsidies offered through federal exchanges, the Supreme Court’s decision will have an impact on subsidies offered in 30 states. If the court rules against subsidies, a large portion of people throughout the United States could lose their health insurance coverage. Many people have come to rely on subsidies because they cannot afford insurance coverage without financial aid. In the case of Wyoming, some 20,000 people could lose their coverage if they no longer have access to federal subsidies.

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

States that manage their own health insurance exchanges will not be affected by the ruling of the Supreme Court. Subsidies in these states will be maintained and people looking for affordable coverage will still be able to access subsidies if they qualify for financial support. States affected by the ruling may have to find ways to ensure that consumers maintain their health insurance coverage, but there is no clear solution to this issue at this time.

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