2 states' plans to save PPACA subsidies win approval

With the decision in King v. Burwell looming, both Delaware and Pennsylvania have been "conditionally approved" to create their own health insurance exchanges, according to The Hill.

If the Supreme Court rules in favor of the plaintiffs in King v. Burwell, up to 8 million Americans in 34 states that used the federal government's HealthCare.gov site to purchase health insurance could lose their subsidies. Both supporters and opponents of the health reform law agree that a loss of subsidies for people who use the federally run exchange would cause them to lose insurance, as well as a rise in premiums.

In a move to save the PPACA subsidies in their states, both Delaware and Pennsylvania applied to set up their own state-based exchanges earlier this month. They are the only two states that have submitted contingency plans for the high court ruling on the PPACA subsidies, according to The Hill.

HHS Secretary Sylvia Mathews Burwell sent a letter to both states' health officials congratulating them on receiving approval. "These marketplaces will be the gateway for each state's residents and small businesses to shop for a broad choice of affordable, quality health insurance coverage," Ms. Burwell wrote in the letter, according to The Hill.

The letter also announced that Arkansas had received approval for a small business marketplace.

More articles on PPACA subsidies:

King v. Burwell forecast: 3 experts on hospital, payer and state impact
'No easy fix' if Supreme Court rules against Obama administration in King v. Burwell
50% of subsidy-eligible US households would owe some repayment, analysis shows

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