We know that ObamaCare is affordable to many people only because of subsides provided by the taxpayer. An eye-opening new study predicts that those premiums would skyrocket astronomically if the taxpayer subsidies are ruled illegal.
According to new research from health group Avalere, if the Supreme Court rules against subsidies in the case of King v. Burwell, 7.5 Americans will be affected and individuals receiving subsidies in relevant states could see an average increase of 255 percent.
More than 85 percent of federal exchange customers currently receive a subsidy. Some nine states including Florida and North Carolina would see premiums spike more than 300 percent. Woe unto those in Alaska and Mississippi who will be on the hook for the biggest increases: 449 percent and 774 percent, respectively.
As we've reported, enrollees would drop out of Obamacare faster than the Affordable Care Act was rammed through Congress. What then for those without healthcare insurance -especially since the individual mandate requires that everyone carry healthcare or face a tax?
The Hill reports:
Both parties have agreed that the court case could wreak havoc on the insurance landscape. Healthcare experts have predicted a massive number of ObamaCare dropouts when people are no longer able to afford coverage.
Nearly 90 percent of people who purchased ObamaCare plans nationwide are receiving subsidies. But Dan Mendelson, founder and CEO of Avalere, said many states that stand to lose subsidies are likely to be even more worse off.
"The federal exchange generally serves low income populations in red states, so that’s where the premium increases would be concentrated,” Mendelson wrote in a statement. “If King prevails, we expect to see virtually all stakeholders aggressively seeking alternatives to ensure continuity of care"
So this is what happens when lawmakers think they are smart enough to create an entirely new healthcare insurance system built on unsavory deals and funded by pulling the wool over the eyes of taxpayers.
Retiring a bad law would be a win for freedom, but it also means we need to be diligent in ensuring that there are market-based and patient-centered options in the wings. We also have to deal with the plight of those who will lose coverage if subsidies are illegal.
When all is said and done, ObamaCare will have been an expensive lesson, but let us hope it is one that everyone grasps