Obamacare Subsidies
By Rick Adamson
6.2.15
© 2015 Rick Adamson
The Supreme Court is about to rule on whether subsidies (where the Feds pay part of the monthly premium) are available to residents of States which do not have an insurance exchange. Most people who have jobs are covered by their employer’s health insurance plan and this issue will have no effect upon them. In fact, they probably find the subject extremely boring. This issue will have no effect of folks receiving Social Security, Medicare or Medicaid, as expanded by Obamacare. However, there are many millions of folks who are not so covered and, as required by law (Obamacare), must arrange for health insurance in other ways.
The meaning of these 6 words are at the heart of a case the Supreme Court is currently hearing. The words relate to those who are eligible for subsidies (subject to income limitations) and they are: “an exchange established by the state.”
If the Court decides against the Administration, subsidies will not be allowed for otherwise qualified persons in the 34 States that did not set up exchanges which would effectively kill ObamaCare. Some folks say these States essentially said to FedGov “no thanks, we do not want your subsidies and we will not set up an insurance exchange.”
Others (including the now famous Dr.Gruber) say these specific words were used in order to coerce the States into participation for fear they would miss out on Federal subsidies for their citizens.
If this happens the law will be promptly amended because the subsidies cannot be taken away. Here is why:
In situations where income is lower than the lowest figure in the range Medicaid provides coverage.
Up to 6.5 million people are receiving subsidies and they will not be happy to lose them. But who are these people? Are they all poor?
√ Under Obamacare Uncle Sam pays a portion (varies depending on income) of the monthly insurance premium as follows (2015):
Individuals with income between $11,670 and $46,680.
Individuals with income between $11,670 and $46,680.
Families of 4 with income between $23,850 and $95,400.
In situations where income is lower than the lowest figure in the range Medicaid provides coverage.
So, no, not all of the people affected are poor. In fact, there are some who are doing quite well and also receiving subsidies. With the median American family income running around $50,000 per year one might argue that subsidies are available for, on average, just about everyone who must purchase their own health insurance.
Just think what the attitude will be toward the Republican controlled Congress if the law is not modified so that the subsidies are continued. Sounds like more of what I call the left wing (progressive) conspiracy at work; tether as many folks as possible to the government and guarantee their support.
And That’s that!
