The Administration has no backup plan if the Supreme Court rules against it in the King v. Burwell case that challenges a key part of the Affordable Care Act, the head of the HHS said in a letter to Sen. John Barrasso (R-Wyo).
“We are confident we will prevail” in the lawsuit, said Sylvia M. Burwell, Secretary of the Department of Health and Human Services, “because the text and structure” of the ACA“ demonstrates that citizens in every state would be entitled to tax credits, regardless of whether they purchased their insurance in a federal or state marketplace.”
A ruling against the Administration “would cause massive damage,” she said. Millions would lose their subsidies and be unable to afford health insurance. Healthy individuals would opt out of coverage, leaving insurers with a percentage of sick customers, and those without would seek care in hospital emergency rooms, driving up healthcare costs.
“We know of no administrative action that could, and therefore have no plans that would undo the massive damage to our health care system that would be caused by an adverse action,” she wrote.
The ‘King’ plaintiffs argue that subsidies granted in 37 states that don’t operate their own exchanges are illegal. The case will be argued on March 4, with a decision expected in June.
