Last week, the White House released a report outlining the economic benefits to states of expanding Medicaid. The report continues a line of argument the Obama administration has used in encouraging states to expand Medicaid under the Affordable Care Act, the president’s health-care law.
The administration faces several obstacles in attempting to sell this argument to reluctant states.
Regardless of how the U.S. Supreme Court decides King v. Burwell — a case regarding the Obama administration’s issuance of health insurance subsidies in violation of their own law — the negative consequences for patients and taxpayers will continue absent thoughtful, patient-centered reform.
Later this month, the Supreme Court will likely announce its decision on King v. Burwell, the lawsuit which asserts tax credits currently being paid to health insurers in 34 to 37 states that use the federal health insurance exchange are illegal. If the Supreme Court stops these tax credits, over six million people will be required to pay the full premiums for their Obamacare policies. This will cause a crisis, which will demand a response by Congress and the president.
King v. Burwell and three other cases before the Supreme Court concern whether individuals purchasing health insurance under the Affordable Care Act in states with no state insurance exchange should receive subsidies from the federal government.
If the Supreme Court overturns the subsidies, Congress will be under pressure to protect Americans who signed up for coverage on the assumption that it would be subsidized from the cost increases associated with this withdrawal of the federal funds.
Congress should enact a short-term subsidy plan to ease the transition and solve the problems created under the ACA by granting states the ability to opt into a better approach to reform.
“I just love nuns generally. I’m just saying.” – President Obama, June 9.
And nuns just love him too. At least nuns who run hospitals seem to. And with good reason: the President advocates policies that enable hospitals like those operated by the Daughters of Charity to provide less charity.