GOP plan to sustain subsidies if King wins is flawed, actuaries say

Published Updated 2 Min Read

A legislation proposal by Sen. Ron Johnson (R-Wis.) and 31 Republicans that would temporarily preserve federal premium subsidies for Healthcare.gov enrollees through August 2017 if the Supreme Court rules them unconstitutional in King v. Burwell would simply bandage a festering wound. That’s the conclusion of a recent American Academy of Actuaries analysis.

The bill, “Preserving Freedom and Choice in Health Care” (also known as S.1016), does nothing to prevent substantially higher premiums and the loss of insurance for at least 7.5 million Americans “unless other equally strong mechanisms are implemented that would encourage participation by a broad cross section of risks,” the group cautions in an issue brief.

Bruce Shutan
Contributing writer

Bruce Shutan is an Employee Benefit News contributing writer based in Portland, Oregon.


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