SOURCE ALERT: U.S. Court of Appeals upholds challenge to Affordable Care Act health insurance subsidies

July 22, 2014

How will the ruling affect younger insurance buyers? How will it impact state exchanges?

Contact: Sadena Thevarajah at (443) 621-4231 or

Dana Goldman, Director of the USC Schaeffer Center for Health Policy and Economics, is an expert in health care reform, health economics and the Affordable Care Act. He can discuss how ACA health insurance subsidies are critical for attracting younger consumers.

“These health insurance subsidies are critical for drawing in the ‘young invincibles.’ Without them, the risk pools could fall apart.”

Contact: (213) 740-0548 or

Joel Hay, Professor of Clinical Pharmacy and Pharmaceutical Economics & Policy at the USC School of Pharmacy, is an expert in health care reform and cost-effectiveness. He can discuss how health insurance subsidies support the sustainability of state healthcare exchanges.

“If the courts uphold the DC Court of Appeals panel decision, the ACA Health Insurance Exchanges will become unsustainable in the 36 states that completely or partially rely on federally-run exchanges. The 70% of Americans in these exchanges (4.5 million) will lose subsidies averaging more than $4,000 per person and will opt out, preferring to pay the smaller tax penalties for non-coverage.”

Contact: (818) 338-5433 or

Geoffrey Joyce, Director of Health Policy at the USC Schaeffer Center for Health Policy & Economics, is an expert in the Affordable Care Act, healthcare economics and Medicare Part D. He can discuss the role of statutory language in healthcare legislation.

“Clean-up legislation is routinely written in order to clarify statutory language like this, but since we are talking about the Affordable Care Act, that likely won’t be the case. It would be unfortunate if a mix of incomplete statutory language and political gridlock keep health insurance from being affordable for some of the most vulnerable Americans.”

Contact: (213) 821-7958 or

Neeraj Sood, Director of Research at the USC Schaeffer Center for Health Policy & Economics, is an expert in health care economics and pharmaceutical spending on the economy. He can discuss how the ruling on subsidies could indirectly affect state healthcare exchanges by discouraging their use.

“If this ruling stands it will take away affordable health care coverage from millions of people, most of whom have recently got covered and like their insurance. Although this ruling does not affect California or other states with state exchanges, it creates confusion and uncertainty about the future of the law. This might discourage some from using the exchanges to get affordable coverage.”

Contact: (213) 821-7949 or