HHS Approves Obamacare Backup Plans

Written by SK Ashby

More good news -- the federal government has given its seal of approval to Delaware and Pennsylvania who have developed a plan to avert disaster if the Supreme Court rules unfavorably in King v. Burwell.

The two states have been "conditionally approved" to set up their own healthcare marketplaces, the Centers for Medicare and Medicaid Services (CMS) announced late Monday. [...]

Delaware and Pennsylvania are among the estimated 34 states that stand to lose healthcare subsidies if the Supreme Court rules against ObamaCare this month in King v. Burwell. They are the only two states to have submitted contingency plans for the ruling.

There aren't many specific details available, however it appears that the plan is to purchase the healthcare-dot-gov technology from the federal government and put the state's name on it.


Wolf administration officials have said they expect to be able to rely on the existing federal technology. Funding would come from the same assessment on insurance plans that currently goes to the federal exchange.

The apparent ease at which states could fix the problem if they're inclined to is just the latest reminder that the premise of King v. Burwell -- the idea that the federal government did not intended for subsidies to be available on the federal marketplace -- is preposterous.

If that were actually true, why would the federal government agree to this?

Other states could adopt a similar solution if the Supreme Court does the unthinkable.