U.S. Supreme Court to Hear ACA Subsidies Challenge in March

The Michigan Business and Professional Association (MBPA) strives to keep you updated on all things related to healthcare reform, namely the Affordable Care Act (ACA). This March 4th, 2015 the U.S. Supreme Court intends to hear oral arguments on a case that could affect the sustainability of the ACA public exchange system and its insurance underwriting rules.

Background:
Michigan is a federally facilitated exchange, (FFE), which means the federal government runs our public health care exchange. As written, the ACA requires those states’ utilizing the federal health care subsidies to have a state-based exchange.  Michigan made several good attempts to secure such a status, but politically that goal was not achievable. In the meantime, before the individual mandate took effect, the Administration overrode that stipulation and allowed all state’s to participate and gain the subsidies for those individuals who qualified.

If the U.S. Supreme Court rules against the Administration, that would prohibit Michigan from participating and accepting the health care subsidies under the federal health care law. This action could destabilize the individual health care market, making insurance unaffordable for those that need it most. Michigan would then be charged with the decision and responsibility on how to move forward.  An answer not easily made when politics is involved.

If the U.S. Supreme Court rules in favor of the Administration, Michigan’s health care subsidies remain status quo. The decision on the subsidy ruling does not impact our state’s decision of adopting the Healthy Michigan Plan, which was an expansion of our Medicaid recipients. Michigan has enrolled over 500,000 individuals in the Healthy Michigan Plan, which is quite an achievement.

We will continue to keep you up to date on the subsidy ruling. There is much speculation out there, but we truly will not know the outcome until the U. S. Supreme Court rules in late June of 2015. Please contact our government relations team if you have any questions or comments. All feedback is appreciated!

Contact information: By Email: bbochniak@michbusiness.org Phone: (888) 277-6464.