ExpertQuote Super Simplifies Supreme Court Decision

Following the Supreme Court ruling today on the King v. Burwell case, six million people will not lose their tax credits, the individual insurance market will not be destroyed and the group insurance market will not be rocked.

What was this about? It was about individual health insurance tax credits secured from a Federal exchange. States that did not create a State-sponsored health insurance exchange used the Federally-run HealthCare.Gov exchange. California was one of the states that did create their own exchange: Covered California.  Thirty-seven states did not create their own health insurance exchange. Six million people secured a Tax Credit/Subsidy/Free Health Insurance from the Federally-run health insurance exchange.

The argument in the King v. Burwell case was that Tax Credits/Subsidy/Free should only be available to residents of a state if and only if the state has created a health insurance exchange; i.e., health insurance tax credits should not be available to people if they have secured them via HealthCare.Gov (the Federal exchange).

Raj Singh, COO of ExpertQuote said, “This was about State versus Federal government powers and questioning whether the Federal government can come into a state and setup a health insurance exchange and give residents of that state a tax credit.” The Supreme Court ruled today, that Federal subsidies will be allowed regardless if they are secured from a state or Federal exchange.

What would have happened if the ruling was the opposite? Six million middle- and low- income adults would have lost their Tax Credit/Subsidy/Free Health insurance. These six million people would have left the individual market as health insurance would have been unaffordable to them. Rates in the individual market would have increased by more than 50%, leading to further deterioration of the individual and destabilizing the individual market and the core foundation of ObamaCare.

What impact would have this had on Group Health Insurance Market? Given the current ruling, none. Given the opposite ruling, large tidal waves in the water can affect all shores; a mass exodus in the individual market, leading to spiking of claims in the individual market, leading to nervous insurance companies (Anthem, Cigna, Blue Cross, etc.) had the propensity of increasing of rates in the group market in order to stabilize the individual market.

Will this stop being a political football now?  Is the duel over? This is unlikely. ACA will move off the daily political talking point until the outcome of the political election in 2016.  If Republicans secure control of the executive and legislative branches, then and only then will we see significant amendments to the law. Given the integration into the DNA of the health care industry, it is fair to assume that a repeals is an unlikely outcome.

ExpertQuote keeps a keen pulse on the changing landscape ObamaCare. They offer an array of robust and expert services to keep your company compliant including a complimentary ObamaCare audit. Schedule yours today at eqaca.com

ExpertQuote specializes in all aspects of group health insurance and includes the San Jose Sharks among its roster of clients, as well as companies ranging from high-tech startups to large organizations such as museums, auto dealerships, municipal parks and banks. ExpertQuote has earned the prestigious “Advantage Status” with Anthem BlueCross and the “Business Leadership Roundtable” with Kaiser Permanente for excellence in service. ExpertQuote recently gained a top spot in its category with the prestigious Silicon Valley Business Journal Book of Lists.

About ExpertQuote

ExpertQuote (EQ) offers an unrivaled quantitative analysis on a proven benefit strategy that has and will save their clients over $120M+, 18%+ annually on benefits expenditures. EQ’s strategies result in ecstatic employees plus providing an employer with competitive hiring and retention advantages.

EQ offers a complimentary Benefits Benchmark & Opportunity Analysis (BBOA). Performance guarantee: If EQ cannot illustrate significant savings and benefits improvement, we will not engage in the business. Most brokers propagate lofty future promises. EQ is obsessively determined to move the needle and earn your business from day one. If your company is not working with a relentless broker-team fiercely navigating an industry under a state of massive product and policy disruption, EQ can boldly state “Your firm is overpaying, and your company is underserved.”