Pennsylvania prepares to establish state exchange if King v. Burwell ends subsidies
The effort would protect 382,000 Pennsylvanians from losing their healthcare subsidies.
Pennsylvania Stat Capitol via Flick by jimbowen0306.
Pennsylvania is the first state to have a backup plan to prevent its residents from losing their health insurance subsidies should the U.S. Supreme Court strike down the federal exchange provision in the Affordable Care Act.
The Justices could deliver a ruling in the King v. Burwell case as early as this month.
The Pennsylvania Department of Insurance on Monday submitted an application to the federal government to set up a state-based marketplace should the ruling be in favor of the plaintiffs, according to Gov. Tom Wolf.
[Also: Obamacare defeat in King vs. Burwell could cost hospitals billions, report says]
The effort would protect 382,000 Pennsylvanians from losing their healthcare subsidies, Wolf said.
The Obama administration is expected to review the application.
The plaintiffs in King v. Burwell argue the wording of the ACA allows only for insurances subsidies in states that have set up their own exchanges. Should they prevail, millions of Americans in an estimated 36 states, including Pennsylvania, who got ACA insurance through the federal exchange would lose their subsidies. Many would be expected to drop their coverage.
[Also: Insured wait on King v. Burwell decision]
The politically charged case has the potential to gut the Affordable Care Act.
In May, Wolf sent a letter to the federal Department of Health and Human Services declaring Pennsylvania’s intent to implement a state-based marketplace in the event the Supreme Court rules for the plaintiffs in King v. Burwell.
“These actions do not mean that Pennsylvania must set up a state-based marketplace,” Wolf wrote. “However, the responsible thing to do is set up a plan to protect hundreds of thousands of people and I look forward to working with members of the legislature to advance this plan if necessary.”
The governor may face opposition from the state’s Republican-controlled legislature.
Twitter: @SusanMorseHFN
