Nearly 17 ObamaCare state insurance exchanges are suffering financial crises.
The marketplaces which are set by the states and District of Columbia are hit by high costs and tepid enrollment number.
In response to this, state officials are considering raising fees on insurers, sharing costs with nearby states, and are calling for more money to be infused into the system. Some officials are even mulling to hand over their exchanges to the federal Healtcare.gov, an exchange that has reported problems of its own.
The Supreme Court is considering a challenge to ObamaCare tax subsidies; if it is struck down then it could affect 8 million Americans.
The Supreme Court judges have to decide whether the law will make all 50 states residents eligible for federal tax subsidies or only for those who live in states that created their own health insurance marketplaces.
The judgment is very important because around 36 states have opted against their own exchange or marketplace and are relying on the US health and Human Service Departments HealthCare.gov.
If the judgment comes against the Obama administration, insurance subsidies for the people in those states would be in jeopardy.
Obama administration officials have said that they are not having any plan if the subsidies are struck down, while some of the republican lawmakers are crafting their own alternatives.
If the Judgment is along the lines of Obama administration then it may accelerate the transfer process to Helathcare.gov from states that have been struggling exchanges.
The sign-ups for the state marketplace rose only 12 percent in the recent enrollment period, compared to 60 percent for the federal exchange.
Most exchanges make their income from fees imposed on insurers, which are determined by the number of sign-ups. So large enrollment is critical if an exchange is going to be financially viable.
Caroline F. Pearson, a senior vice president at Avalere Health said, “They are literally looking at huge gaps, and they are not sure how they are going to get through the year.”