Ruling on subsidies could impact health insurance benefits

According to The Wall Street Journal, a new ruling is currently calling into question some consumers’ eligibility for federal tax credits during the next open enrollment period.

The Journal reported a recent ruling, which still needs to be supported by a federal appeals court, decided that people can only receive subsidies on their insurance benefits if their state has its own exchange. For Americans in the 36 states that opted for the federal health insurance marketplace, their ability to receive needed tax credits to access affordable health insurance may be in danger. Another Journal article noted insurers have said that while the situation is being dealt with currently, some have noted many people could lose coverage down the line.

This ruling has caused debate among Democrats and Republic regarding the viability of the Affordable Care Act and the use of the federal exchange. According to the Journal, some Democrats are saying that this shows Republican states that decided not to make their own marketplaces should have built their own marketplaces in the first place, while some Republicans have pointed their fingers at flaws in the ACA itself.