Obama Administration has No Alternative Plan for Obamacare if Federal Subsidies are Denied


The Supreme Court may announce its decision in King vs Burwell any day between June 22 and June 30 reports Zeca Oliviera. This is the case which will decide if the IRS had the legal authority to extend federal health care subsidies to people who enrolled for Obamacare through the federal exchange. At issue is the fact that 34 states opted to use the federal exchange instead of the operating their own. As per the Affordable Care Act, subsidies were allowed only for those exchanges “established by the state”. Obamacare architect Jonathan Gruber admitted that the subsidies were authorized only for state-run exchanges by design. He explained this was the way the federal government was going to compel the states to adopt a number of the plan’s key aspects.

However, the unexpected occurred, and most states refused to operate their own exchange. In response, the IRS decided the restriction on health care subsidies was a mistake and extended them to everyone eligible regardless of which exchange was used. The Supreme Court will soon decide on the legality of the federal subsidies. That said,Health and Human Services Secretary (HHS) Sylvia Burwell admitted the administration has no fix or “plan B” should the high court rule against them. This means that the 6.4 million people receiving Obamacare in the states using the federal exchange may be left without any taxpayer funded assistance. On average, people qualifying for assistance in those states receive an average of $272 a month to reduce their p

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