Some 40,000 Iowans will continue to receive federal subsidies for purchasing health insurance, thanks to a 6-3 U.S. Supreme Court opinion announced today. Plaintiffs in King v Burwell had argued that Congress intended for subsidies to be available only to Americans who purchased health insurance through state-run exchanges. Chief Justice John Roberts rejected that interpretation in his opinion (pdf), joined by Justices Anthony Kennedy, Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor, and Elena Kagan. Amy Howe explained the ruling in “plain English” at the SCOTUS blog, where Lyle Denniston wrote a separate analysis of the opinion.
Dissenting Justice Antonin Scalia accused his colleagues of changing “usual rules of statutory interpretation for the sake of the Affordable Care Act,” as the Supreme Court majority did (in his view) when it upheld the individual mandate to purchase health insurance in 2012.
A ruling for the plaintiffs in King v Burwell would not only have threatened health care access for roughly 6.4 million people who receive subsidies for health insurance purchased through the federal website Healthcare.gov. It could have caused cascading effects such as sharp premium increases for millions of Americans who do not qualify for subsidies but would nevertheless have been priced out of the health insurance market. In theory, Congress could have fixed the problem with a one-paragraph bill clarifying that people who buy insurance through the federal exchange qualified for subsidies, but most House and Senate Republicans appeared unwilling to go that route.
Today’s Supreme Court decision removes the only remaining threat to federal health insurance subsidies for eligible Iowans. Last month, several insurance companies applied to offer policies for 2016 to Iowans through the exchange. Only one provider did so for 2015, and if that company had pulled out of Iowa, health insurance subsidies would not have been available to anyone in our state for next year.
UPDATE: Added Iowa political reaction below. Note that several of the Republican statements renew a vow to repeal and replace “Obamacare.” Though destroying the system created by the 2010 health care reform law was transparently the goal of the King v Burwell plaintiffs, their lawyers maintained the charade that the lawsuit was only about getting the Obama administration to follow the Affordable Care Act.
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