What Events May Follow King v Burwell Ruling?


With the ruling on King v. Burwell in favor of Obamacare, Obama Administration is seeing a second major victory.

As per the decision, Supreme Court has made it clear that Health Insurance Marketplaces in all the states can provide tax credits to qualified individuals. Since the law came into effect, small business owners are allowing their employees to purchase their insurance plans by providing them monthly allowances that cover up the costs.

Many small employers also get qualified by IRS for the additional allowances or premium tax credits to help cover the extra (or out of pocket) health coverage costs. These tax credits were the center point of the King v. Burwell case.

The decision has preserved the health insurance of millions of Americans.

Here’s a look at what events may take place post decision:

ACA May Get Gradual Fixes

Since the things have started settling down to an extent, now Obama administration and Congress can work on little improvements in the law to make it more likeable for individuals and employers. There is a probability of a few bills likely to get fixed this year:

IRS reporting requirements may get simplified: Since every employer is troubled with the complexity of reporting requirements, administration may work on reducing the burden and making it more affordable and acceptable.

Expansion of HRA & HSA: Everybody feels that small employers must be enabled to provide HRA or health reimbursements arrangements to reimburse their employees for medical expenses and health coverage premiums.

Early retirees can get allowed to pay for their health coverage through HSA funds. Also the Medicare-eligible retirees can get allowed to pay for Medicap coverage using the funds.

Opportunity for Small Employers to Switch to Individual Health Insurance:

The ruling has confirmed that the individual market has a strong position in the health insurance industry and will continue to improve. Thus, small employers who are heavily affected by the increasing costs can now switch to individual markets. Also, it is expected that the businesses may keep on providing benefits to employees through monthly allowances.

A Major Transition of State Exchanges to HealthCare.gov:

As the tax credits are upheld for all states, many state exchanges may switch to Health care.gov as it is capable of operating online market effectively that may not be possible for small states to handle individually. Hawaii and Nevada States have already made their decision to make the switch.

To conclude, the decision has set a wave of change across the nation and Affordable Care Act is now going to be the major milestone in the history of America’s health insurance industry. Many changes are about to come and Obamacare will continue to remain in news for a longer than expected time.

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