Obama Supreme Court Case: No Current Backup Plan If SCOTUS Eliminates Federal Obamacare Subsidies
U.S. Health and Human Services (HHS) Secretary Sylvia Burwell reiterated the Obama administration's policy that there is no backup plan if the Supreme Court removes a vital provision of the Affordable Care Act (ACA), also referred to as Obamacare.
Burwell said the Obama administration would be unable to assist millions of Americans who have enrolled through the federal health insurance marketplace. The enrollees who received health coverage from Healthcare.gov could lose their medical insurance pending on the Supreme Court's ruling in the King vs. Burwell case, which relates to the federal subsidies enrollees receive.
"We don't believe there is an administration solution that would undo all of that damage," said Burwell to CNN.
The Supreme Court ruling is expected anytime this week or the end of the month.
In the King vs. Burwell case, launched by ACA opponents, plaintiffs say the language of the health law forbids the federal subsidies in the 34 states that have yet to form a state-based health insurance marketplace. Burwell said many of the Healthcare.gov enrollees, if they lose their subsidies, would not be able to afford their medical plan.
Burwell said there are two solutions if the Supreme Court rules against the Obama administration. The HHS Secretary said Congress can create legislation fixing the ACA law's language or for the 34 states to create their respective health insurance marketplaces.
"If the court makes the decision that we don't have the authority to do these subsidies, then the critical decisions are going to sit with the United States Congress, and with states and governors," Burwell added.
Burwell clarified that some components of the law will remain intact such as young adults ages 26 and lower staying in their parents' medical plans and preventing insurers from discriminating against consumers with preexisting consumers.
As Latin Post reported, more than six million Americans are at risk of losing their health insurance plans. According to the HHS, the nationwide uninsured rate in the Latino community dropped 12.3 percent since the ACA's first provisions went in effect in 2010. Since 2010, more than 4.2 million Latinos gained health insurance. Despite the gains in Latino enrollment, Latinos are still the largest uninsured ethnicity group.
"The intention of Obamacare is clearly to make health insurance affordable no matter where a consumer lives, and we're focused on making sure that consumers understand the facts about how the Supreme Court rule affects them," said Annette Raveneau, national Latino press secretary of Enroll America, a national nonprofit and nonpartisan organization aimed at educating people about the ACA.
Raveneau, in a statement to Latin Post, continued, "Eliminating financial help in federally facilitated marketplace states like Florida and Texas, where there is a great number of Latino families, would have major implications for the millions of consumers who need it to help them afford health insurance. In fact, studies estimate that more than eight million people would lose their health coverage if the financial help were taken away."
Raveneau stated that previous conversations with Healthcare.gov consumers on the ground, found that the tax credits are "incredibly important" for millions of families.
"For example, María Herrera from Virginia has health insurance for the first time in 20 years thanks to Obamacare and without the financial help that she receives she would not be able to afford her full premium and would most likely have to go without once again," said Raveneau. "We're confident that the intention of the law is clear: financial help should be available to consumers no matter where they live."
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For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.
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