A Crippling Blow to Obamacare Looms in SCOTUS Ruling

National Journal: “If the Supreme Court tears apart Obamacare this summer, the president won’t be able to put it back together all by himself … The high court is expected to rule this summer in a lawsuit over Obamacare’s insurance subsidies, which more than 80 percent of enrollees are receiving. ”

“Without a fix in Congress or a good administrative option, the only solution would be to convince the states to set up their own exchanges. That would involve convincing Republican governors and Republican-controlled state legislatures, all of whom have already refused to set up their own exchanges once, to cooperate.”

“States are going to have to establish exchanges, whatever that means. But whatever it means, it probably means the state would have to take some kind of affirmative action.”

“Because HHS had considerable flexibility in certifying state exchanges, it might be able to soften some of its standards to make it easier for states to take control of their marketplaces after a Supreme Court decision.”

“Setting up a new system for regulating insurance plans isn’t free–states that initially set up their own marketplaces were eligible for unlimited planning and establishment grants from the federal government, to help them get off the ground. But that funding has expired; states would now have to spend their own money.”

“Furthermore, the looser the standards HHS adopts, the more likely they are to draw another legal challenge.”

“It could just become a never-ending series of lawsuits.”

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