Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

herding cats

(19,567 posts)
Fri Dec 12, 2014, 11:28 PM Dec 2014

Obama may not be able to salvage Obamacare if the Supreme Court invalidates its tax credits.

The fate of Obamacare will again be in the hands of the U.S. Supreme Court next year -- and if the conservative justices rule to invalidate tax credits offered through the federal HealthCare.gov, dealing a punishing blow to the law, it isn't at all clear that the White House will have the legal and practical leeway to save it.

That was the conclusion of three academics in a new analysis published in the New England Journal of Medicine which outlined the challenges that the Obama administration would face in that worst-case Supreme Court scenario. The most obvious solution to an adverse Supreme Court ruling is to turn every exchange into a state exchange, allowing the law's tax credits to flow again -- but how easy will it be for the administration to do that?

"We're quite pessimistic. The operational, legal and political challenges here are immense," Nicholas Bagley, a University of Michigan law professor who co-authored the article, told TPM in a phone interview on Thursday. "The more I've looked at this, the more alarmed I've grown."

The problem is three-pronged: Legal, because the Affordable Care Act sets some very specific requirements for state-based exchanges; practical, because states might not have time or authority to act after the Court ruling comes down in June, as expected; and political, because Republican intransigence against Obamacare is currently one of the defining elements of American politics.

An adverse Court ruling in the King vs. Burwell case would invalidate the law's tax credits, received by nearly 90 percent of Obamacare enrollees in 2014, in at least 34 states that are using the federal website. Health coverage would likely then become unaffordable for many enrollees, and those who choose to keep paying the higher price are more likely to be sick and more costly, potentially sending the law into a dreaded death spiral.

That is why, as TPM reported in the past, health policy wonks expect the administration will do anything it can and exercise any discretion to keep the law afloat. But, as NEJM's legal scholars laid out in their new analysis, that won't be as easy as it might sound. Here are the three problems the administration would face.

Full article: Saving O-Care From SCOTUS Might Be A Whole Lot Harder Than It Sounds

8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Obama may not be able to salvage Obamacare if the Supreme Court invalidates its tax credits. (Original Post) herding cats Dec 2014 OP
I still think SCOTUS will vote against the law sakabatou Dec 2014 #1
No point borrowing trouble. Igel Dec 2014 #6
That would be so terribly horrible for all those who are benefitting from it.. it would make some Cha Dec 2014 #2
I hope people are willing to fight for their insurance if SCOTUS rules against the okaawhatever Dec 2014 #3
SEVEN HELLS! VanillaRhapsody Dec 2014 #4
Seems to me the insurance companies would like to upaloopa Dec 2014 #5
Obama will be preparing statement .... hadrons Dec 2014 #7
Well with the gutting of Dodd Frank, the campaign finance doc03 Dec 2014 #8

Igel

(35,350 posts)
6. No point borrowing trouble.
Fri Dec 12, 2014, 11:39 PM
Dec 2014

They will or they won't.

They're not likely to care much about public opinion, esp. ours.

Rather than worry or be upset about what they might do, be concerned about what you can do to make the world a better place.

Then if they scuttle Obamacare, the world will be a better place than it would be otherwise.

And if they don't scuttle Obamacare, the world will be a better place than it would have been.

Unnecessary stress won't help anybody, and might make the world a worse place.

Cha

(297,574 posts)
2. That would be so terribly horrible for all those who are benefitting from it.. it would make some
Fri Dec 12, 2014, 11:31 PM
Dec 2014

happy who are always whining about it.. I would imagine. They don't give a shit about those it does help.

Damn. mahalo hc

upaloopa

(11,417 posts)
5. Seems to me the insurance companies would like to
Fri Dec 12, 2014, 11:38 PM
Dec 2014

keep things as they are. Even if the subsidies are gone the rest of the law remains. That would mean the insurance companies would still have to accept pre existing conditions but there would be far less people in the pool.

hadrons

(4,170 posts)
7. Obama will be preparing statement ....
Fri Dec 12, 2014, 11:43 PM
Dec 2014

that he expects the right-wing judges to be fair and that he has no doubt that McTurtle or Boner will do everything to help salvage Obamacare.

doc03

(35,363 posts)
8. Well with the gutting of Dodd Frank, the campaign finance
Fri Dec 12, 2014, 11:53 PM
Dec 2014

giveaway and a Democratic President signing a budget that lets Wall Street cut our pensions seems the last 6 years have been a total waste.

Latest Discussions»General Discussion»Obama may not be able to ...