Friday, June 26, 2015

King v. Burwell Decision Doesn’t Change That Obamacare Remains Unworkable, Unaffordable and Unpopular

Today the Supreme Court ruled in favor of the administration to allow Obamacare subsidies to flow through This is a disappointment for the rule of law and for the states that have fought to keep some of Obamacare’s flawed policies out of their states.
While the administration and Obamacare supporters attempt to convince the American people that it is now smooth sailing for Obamacare, nothing could be further from the truth.
Despite the decision, the problems with Obamacare are real and not getting better. The law’s flawed foundation continues to make Obamacare unworkable, unaffordable and unpopular.
As my colleague Ed Haislmaier skillfully points out, “The complexity and cascade of adverse effects are the inescapable byproducts of major flaws in the legislation’s basic design.” For instance, the complexity of the tax credits has resulted in two-thirds of those receiving subsidies, having to repay some portion of the subsidies they received, according to H&R Block.
Nothing in the court’s ruling will change this moving forward. Each year individuals wishing to claim a subsidy will have to estimate their income for the year in advance. Any miscalculation, specifically underestimating their income, necessitates a repayment to the IRS.
Removing ACA Regulations Would Reduce Premiums in These 34 States
In King v Burwell, the Supreme Court could decide that ACA subsidies are no longer available to individuals in the 34 states that chose not to set up a state exchange. Americans affected by such a decision will need access to more affordable coverage. Select above to see how much you could save if Congress removed the ACA insurance regulations that are driving up the cost of coverage.
Today, a majority of the Supreme Court chose to overlook the clear language of the statute. As Justice Antonin Scalia noted in his dissent it is “quite absurd” that Congress meant to allow subsidies in the exchange established by the federal government when it expressly limited those subsides to state-run exchanges. This flawed ruling allows the administration to continue making the law, rather than enforcing it.

The law continues to be unaffordable for everyday Americans. Obamacare’s costly insurance regulations have made coverage more expensive. The Supreme Court’s decision to allow the subsidies to flow through only helps a few million people pay for coverage leaving millions more facing higher, not lower, health care costs.
Even now, double digit rate increasesare being submitted for 2016. These trends fuel the mounting budgetary pressures facing the law, as my colleagues Robert Moffit and Pat Knudsen have well documented.

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