Here’s how the King v Burwell ObamaCare decision could affect Alabama

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June 23, 2015

BIRMINGHAM, Ala. — Research from two influential conservative think tanks shows that many Alabamians are set to benefit to the tune of hundreds of dollars a month if the Supreme Court decides to strike key portions of ObamaCare later this week.

According to analysis by the Alabama Policy Institute (API), the plaintiffs in King v. Burwell are challenging IRS rules used to establish a federal insurance exchange (or marketplaces) under the ACA (ObamaCare). The plaintiffs allege that the federal government and the IRS do not have the authority to extend tax-credit subsidies under federal exchanges because the text of the ACA only provides for subsidies through an “exchange established by the State.”

The Heritage Foundation asserts that approximately 463,000 Alabamians could pay less for insurance if the federal ObamaCare exchanges are deemed illegal by the Supreme Court this week.

Since 2011 the Obama administration has spent nearly $5.4 billion implementing only 16 state-based exchanges; the remaining states either rely on the federally-run exchanges or partnership exchanges.

In 2014, a total of 463,525 Alabamians purchased plans, with 71,920 people receiving subsidies to offset premium costs of health insurance plans purchased through the federal exchange.

The Obama administration’s own Health and Human Services Secretary Sylvia Burwell admitted in a letter to Congress earlier this year that a ruling against ObamaCare could be the law’s undoing.

“We know of no administrative actions that could, and therefore we have no plans that would, undo the massive damage to our health care system that would be caused by an adverse decision,” wrote Secretary Burwell. During oral arguments for the case, Supreme Court Justice Anthony Kennedy also conceded that to strike down the federal exchange would cause a “death spiral” for health insurance under Obamacare.

API argues that if SCOTUS rules against the law, Congress would then have two options: go back to the drawing board with lessons learned on the disastrous impacts of this burdensome law; or negotiate a “fix” in order to preserve the ACA.

“A ruling in favor of the plaintiffs in this case would give the Republican-run Congress its first real opportunity to deliver on campaign promises to ‘repeal and replace Obamacare,’” the think tank wrote in its analysis.

Check out the infographic from API below to see how much you could save if the Supreme Court strikes down key portions of ObamaCare: