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A contingency plan for King v. Burwell and related cases

Thomas Miller, Joseph Antos, James Capretta, Ramesh Ponnuru, Yuval Levin, Gail Wilensky, Lanhee Chen, David Wilson and Avik Roy
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Thomas Miller: American Enterprise Institute
James Capretta: American Enterprise Institute
Ramesh Ponnuru: American Enterprise Institute
Yuval Levin: American Enterprise Institute
Gail Wilensky: American Enterprise Institute
Lanhee Chen: American Enterprise Institute
David Wilson: American Enterprise Institute
Avik Roy: American Enterprise Institute

AEI Economic Perspectives, 2015

Abstract: If the Supreme Court sides with the plaintiffs in King v. Burwell and related cases, and thus invalidates the payment of premium subsidies in states that have relied on the federal government to build and run the Affordable Care Act (ACA) insurance exchange, Congress will come under great pressure to enact a remedy to stabilize insurance markets and coverage. Congress should enact such a remedy, including a temporary extension of the existing subsidy program.But it should also allow states to opt into an alternative reform structure, with a simplified tax credit plan and elimination of the ACA's federal insurance rules. In this alternative, there would be no individual or employer mandate, but individuals who stayed continuously insured would be protected from higher premiums or restricted coverage based on their health status.

Keywords: AEI Economic Perspectives; King v. Burwell; Affordable Care Act (Obamacare) (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2015
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