Friday, January 9, 2015

Court case on Obamacare

The Supreme Court has agreed to hear the case regarding Obamacare centered around one line in the plan. "Exchange established by the State." When this law was being written there was concern that many states would not go along with the new regulations and in order to encourage them to do so the law stated that unless a state agrees to establish an exchange they would not receive federal subsidies. Even with this incentive 36 states decided not to establish an exchange but the Obama administration chose to offer subsidies anyway and this decision is being challenged in court. If the court rules that there shall be no subsidies for those 36 states that did not establish an exchange, about 8 million people who are now receiving subsidies will lose them. Many of these people will then be eligible for insurance under Medicaid. There are no pre-existing conditions requirements under Medicaid and the cost is little to nothing. The court ruling will likely be announced in June of this year.

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