Ruling Upholding Obamacare Subsidies Said To Have Little Effect On State
In one of the most closely-monitored cases of the Obama Administration, on Thursday the US Supreme Court ruled 6-3 in favor of upholding a provision of Obamacare that allows for tax subsidies to continue. The ruling in King vs. Burwell means the court found that tax subsidies received by Americans to make the insurance more affordable are not, as some had argued, dependent upon whether or not each the healthcare exchange being used was a state or Federal exchange. This ruling has implications that vary by state, as some states had set up their own health exchanges, and some had not.
The Durango (CO) Herald reports reaction from Coloradans to Thursday’s ruling. Colorado Center on Law and Policy Health Program Director Elisabeth Arenales said, “As a result of this ruling, over 6 million people in the … states that use the federal health insurance marketplace can breathe a sigh of relief because they will not lose the tax credits that have made quality health insurance affordable for them.” Those opposed to Obamacare were less pleased with Thursday’s announcement. Advancing Colorado Executive Director Jonathan Lockwood said, “Coloradans want to see the free market thrive. Repealing, and more importantly, replacing ‘SCOTUScare’ would provide more options, choice and freedom in health care. Creating more competition and options will result in higher quality, patient-centered and accessible care.” Meanwhile, the state’s two Senators remain divided on the issue, with Democrat Michael Bennet “ready to move on” and Republican Cory Gardner remaining “committed to repealing Obamacare and replacing it with common-sense reforms.”
What Happens Next
Thursday’s ruling, though important on the national scale, doesn’t effect Colorado’s state health exchange, which will continue to operate as before. As Kevin Patterson, CEO of the state’s health exchange, Connect for Health Colorado, said, “We are fortunate that Colorado’s Legislature in 2011, on a bipartisan basis, opted to create a state-based marketplace. The questions raised in the court case have to do with the states operating within the federal exchange and do not apply to Colorado consumers. If you receive tax credits to help lower the cost of health insurance purchased through us, there is still no impact on your coverage.”
What This Means For Small Businesses
Colorado’s small business owners are no strangers to the ongoing Obamacare debate. Since Colorado’s legislature implemented a state healthcare exchange, costs have become increasingly burdensome for business owners. Thursday’s ruling does nothing to stem the tide of rising healthcare costs for businesses across Colorado.
Additional Reading
The Denver Business Journal and the AP are among the other outlets covering the effects of Thursday’s ruling on Coloradoans.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
