Some would argue that only states which have set up their own marketplaces for healthcare are eligible for federal subsidies according to the wording of the ACA. The Supreme Court is ruling in June on whether or not this is fact or fiction, fueled to overturn subsidies to these states by opponents of the ACA. 34 states do not have their own marketplace, including Texas, Florida, Ohio, Illinois, and New Jersey.
Some big things could change if these subsidies are overturned if you live in one of 34 states without its own marketplace. Whatever plan you already have in place for 2016 through the federal marketplace will not receive subsidies, if the court rules against the ACA.
Indeed, as these subsidies vanish, many reasonably healthy Americans would likely push for repeal of the individual mandate requiring everyone to be insured, citing overwhelming premiums. Currently, all customers, including both direct buyers and those who buy through the government market, are grouped together. As such, should this repeal take place, many individuals would drop their ACA plans and direct buyers would see a sharp increase in premiums.
See below to see what kind of marketplace your state has, and if you’ll be affected.
The Supreme Court is expected to reach a decision in June.