Recently the United States Supreme Court heard arguments on
King v. Burwell. This case is focused on the legality of subsidies in states
that did not set up their own exchange.
In the Patient Protection and Affordable Care Act (more commonly known as the ACA or Obamacare) the law allowed states to decide if they wanted to set up an exchange. If states decline then the Federal government establishes an exchange. The exchange sets up a mechanism for individuals to compare, buy and importantly for this lawsuit, obtain a subsidy (a reduced price) for their coverage by way of means testing. The controversy is over the language in the ACA over states that do not have an exchange.
The question before the Supreme Court is, can subsidies be given to individuals in the aforementioned states? There are 34 states without an exchange. Oregon is not one of the 34 states in the lawsuit but we are a special case in that we have elements of both a state and federal exchange.
Would a ruling by the Supreme Court effect Oregon? Speculation is all over the board as the Supreme Court is difficult to predict. Oregon state officials contend that we are in compliance. A major contributor in the reasoning behind the plaintiff’s claim in King v. Burwell has a different opinion.
In the Patient Protection and Affordable Care Act (more commonly known as the ACA or Obamacare) the law allowed states to decide if they wanted to set up an exchange. If states decline then the Federal government establishes an exchange. The exchange sets up a mechanism for individuals to compare, buy and importantly for this lawsuit, obtain a subsidy (a reduced price) for their coverage by way of means testing. The controversy is over the language in the ACA over states that do not have an exchange.
The question before the Supreme Court is, can subsidies be given to individuals in the aforementioned states? There are 34 states without an exchange. Oregon is not one of the 34 states in the lawsuit but we are a special case in that we have elements of both a state and federal exchange.
Would a ruling by the Supreme Court effect Oregon? Speculation is all over the board as the Supreme Court is difficult to predict. Oregon state officials contend that we are in compliance. A major contributor in the reasoning behind the plaintiff’s claim in King v. Burwell has a different opinion.
There are many questions. Will individuals using Oregon’s
exchange lose their subsidies when the court is expected to rule in June? Will
subsidies be rolled back to January 2014? Or will the Supreme Court answer this
question only for the 34 states in the lawsuit?
Arin J. Carmack
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