A state-run health insurance exchange that could help 183,000 people who might lose federal subsidies under a U.S. Supreme Court ruling would be created under a bill announced Wednesday by Democratic lawmakers.
The Supreme Court heard arguments Wednesday in King vs. Burwell, a case that could end subsidies in the Affordable Care Act’s federal exchange used by Wisconsin and most states. A ruling is expected by June.
The decision could harm 183,000 residents who receive subsidies averaging $319 a month, Citizen Action of Wisconsin said Wednesday. Their average monthly premiums would go from $130 to $450, potentially causing many to drop coverage.
“The impact would be devastating,” said Robert Kraig, executive director of Citizen Action. He called it a “predictable disaster” like a flood or hurricane.
Overall, 205,000 people in Wisconsin signed up for insurance on the federal exchange. Those making up to four times the poverty level qualify for subsidies.
A bill released by state Sen. Kathleen Vinehout, D-Alma, and Rep. Melissa Sargent, D-Madison, would set up the Badger Health Benefit Authority to run an exchange with insurance options for individuals and employers with up to 100 workers.
The bill draws on work by former Democratic Gov. Jim Doyle to set up a state exchange, Vinehout said. Gov. Scott Walker, a Republican, opted instead for the federal exchange.
“Let’s make sure the people of our state are not devastated by partisan politics,” Sargent said.
Kitty Rhoades, secretary of the state Department of Health Services, was asked Tuesday by the Legislature’s Joint Finance Committee about the state’s contingency plans for the Supreme Court ruling.
“It’s a federal program that has to be fixed,” Rhoades said. “This is definitely back in their ballpark.”
Date: March 5, 2015