Manatt's Joel Ario, a managing director with Manatt Health Solutions, spoke to National Journal for an article on a round of court challenges that could soon allow state governors to decide whether to provide subsidized coverage on the insurance exchanges.
National Journal reports that a recent set of lawsuits challenges the provision of subsidies on the federal marketplace, arguing the law specifically says they should be available on exchanges established by the state. If one of the rulings is upheld, subsidies will vanish in more than half the states, making insurance unaffordable to many who now receive them. Governors in states currently on the federal exchange would thus be put in the position of deciding whether to switch to a state exchange and keep the subsidies, or allow residents to lose their insurance coverage.
"The bar has continued to evolve; it's easier and easier to become a state exchange," said Ario. "So far, the [HHS] secretary has been pretty flexible, if you as a state are willing to cooperate. In that light, it becomes a matter of ideology for governors to stick their feet in the sand and not move."
Read the article here.