A Potential Obamacare ‘Death Spiral’

Jason Millman contends that “ongoing legal challenges to one aspect of [Obamacare] could still put its coverage expansion in serious jeopardy.”

“The dispute has to do with whether the subsidies can be provided through public health insurance marketplaces in states that refused to set up their own, instead leaving the job to the feds.”

“The Supreme Court could potentially take up this key question next year, following appellate court rulings this summer. If these lawsuits against the administration are successful, it would result in a ‘near death spiral’ for the individual market, according to a new Rand Corporation analysis.”

“Premiums would be 43.3 percent higher on average in the individual market in 2015, while enrollment — on and off the exchanges — would drop by 68 percent, according to the research firm’s microsimulation model. In all, 11.3 million fewer Americans would have health insurance, according to its analysis.”

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