Dive Brief:
- A federal judge has decided not to rule on the state of Indiana's challenge to the ACA, ruling that a Supreme Court decision pending on a similar challenge by Virginia would resolve most issues raised by Indiana's suit.
- The Indiana ACA challenge, which was brought by the state's Attorney General and 39 school districts, argues that the subsidies the healthcare reform law offers shouldn't be permitted because the state chose not to run its own online marketplace. Right now, the average premium on Indiana's exchange is only $88 per month, but premium costs for consumers could skyrocket if subsidies are discontinued.
- The Supreme Court will consider Virginia's suit next year, and is expected to render a decision by the end of June.
Dive Insight:
The Supreme Court's decision on Virginia's ACA challenge should have far-reaching effects that go well beyond determining the fate of Indiana's suit. If the Supreme Court buys Virginia's arguments, it could have a ripple effect that could all but shut down ACA signups in non-marketplace states. After all, the subsidies exist for a reason, and yanking them away from consumers with modest incomes could prevent them from buying coverage at all.
The Supreme Court ruling will also have a major impact on the tactics employed by those who would like to see the ACA go away. States objecting to the ACA have commonly used Indiana's argument as a means to begin breaking down the law piece by piece. The law's supporters, for their part, say that banning subsidies in states without their own marketplace makes no sense, as the exception challengers are relying upon is at best a drafting error. Obviously, the Supremes will have to sort it out.
Want to read more? You may enjoy this story about the Halbig case, also on hold until SCOTUS rules on King.