Premium Tax Credits and the Affordable Care Act: The Potential Ramifications of King v. Burwell
On March 4th, the Supreme Court will hear oral arguments in the case of King v. Burwell, a challenge to the legality of the regulation authorizing premium tax credits in federally facilitated exchanges. What does this mean for the Affordable Care Act and consumers in these states? What should lawmakers be thinking about as we await the Court's opinion in this case?
Christine Eibner discussed findings from two recent studies that examine
- what can be expected to happen to enrollment and premiums if the Supreme Court invalidates premium tax credits provided in states with federally facilitated exchanges;
- the critical role that premium tax credits play in ensuring stability in the individual health insurance marketplace;
- how the current structure of premium tax credits affects the mix of those enrolled in the exchanges established under the Affordable Care Act.
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Eliminating government subsidies for low- and moderate-income people who purchase coverage through federally run health insurance marketplaces would sharply boost costs and reduce enrollment in the individual market by more than 9.6 million.
