March 4, 2015

King v. Burwell challenges federal subsidies for health-insurance plans in more than 30 states

CHICAGO (March 4, 2015) – Today, the U.S. Supreme Court will debate whether the federal government is allowed to give subsidies for health-insurance plans in states that do not have a state-based health-insurance exchange under the Affordable Care Act. The case, King v. Burwell, is the latest in the continued legal battle over the federal overhaul of the country’s health-care system, and could deal a major blow to the law. Naomi Lopez-Bauman is a leading expert on how ObamaCare has affected health-care options for people all across the country, and specifically in the Midwest. Naomi is available for interviews in-person, via telephone or Skype.

WHAT: Oral arguments in the Supreme Court case King v. Burwell are being heard Wednesday, March 4, 2015.

WHO: Naomi Lopez-Bauman, director of health policy at the Illinois Policy Institute

WHEN: Expert available for interview all week.

BACKGROUND:

  • King v. Burwell challenges the Internal Revenue Service’s ability to provide insurance subsidies for health-insurance plans bought in states that do not have state-based health-insurance exchanges. The case also challenges the IRS’s ability to charge penalties to people in those states who do not purchase qualifying health-insurance plans.
  • With the outcome of this case, approximately 455,000 Illinoisans would no longer be subject to penalties for not purchasing qualifying health-insurance policies. Approximately 3,000 Illinois employers would no longer be subject to pay penalties.
  • This case could also impact more than 900,000 Midwesterners who could stand to lose health-insurance subsidies. Losses from Midwest states without state-based health-insurance exchanges include:
    • Illinois: 270,000 people could lose health-insurance subsidies.
    • Wisconsin: 185,000 people could lose health-insurance subsidies.
    • Indiana: 192,000 people could lose health-insurance subsidies.
    • Michigan: 300,000 people could lose health-insurance subsidies.
    • Iowa: 39,000 people could lose health-insurance subsidies.
    • Missouri: 223,000 people could lose health-insurance subsidies.
  • With this case, state lawmakers could have new opportunities to reform their state health-care systems in ways that provide for the truly needy, address health-care costs and create sustainable and affordable health-care systems going forward.

For interviews, call or text: Diana Rickert or Nathaniel Hamilton (312) 607-4977