Premium Subsidy Fight Creating Uncertainty for Hospitals, Health Plans
A pair of conflicting rulings regarding tax credits for those who buy health insurance on the federal marketplace is a "credit negative" for health plans and not-for-profit hospitals, Moody's Investors Service says.
Not-for-profit hospitals and health plans may feel the economic effects of the uncertainty created when two federal appellate courts last week issued conflicting opinions on a key provision of the Patent Protection and Affordable Care Act.
In a 2–1 ruling in Halbig v. Burwell, last week, judges on the D.C. Circuit Court of Appeals last Tuesday said that specific language in PPACA does not authorize the Internal Revenue Service to extend tax credits to an estimated 4.7 million people in 34 states who bought coverage through the federally facilitated Healthcare.gov exchange.
On the same day, the Fourth Circuit Court of Appeals in Virginia issued a conflicting ruling on essentially the same case, saying that the tax credits were legal. The case is expected to be heard by the U.S. Supreme Court.
The tax subsidies are a key provision of Obamacare that keeps health insurance affordable for millions of people, and the uncertainty created by the rulings is a "credit negative" for health plans and not-for-profit hospitals, Moody's Investors Service said.
- CEO Exchange: Preparing for Population Health
- Interventional Radiology No Longer a Sub-Specialty
- Advocate, NorthShore Deal Would Create 16-Hospital System
- Top Reason for Nurse Turnover: Managers
- CEO Exchange: Pressure is On to Partner, Drive Quality
- House OKs Cassidy's 'keep your plan' bill
- Power of price: In South FL and the nation, healthcare costs often are shrouded in secrecy
- Two NY hospitals to offer free hip and knee replacement surgeries for qualifying patients in December
- 3 Strategies for Retaining Millennial Employees
- How MA plans to re-enroll 450,000 residents in health insurance