Officials from at least 16 states met in early May for a confidential, unannounced meeting to
discuss available to their states if the Supreme Court rules against the Obama administration in the King v. Burwell case.
The Wall Street Journal disclosed the meeting. According to reporters Louise Radnofsky and Stephanie Armour, the officials concluded they would have no practical way to respond to a ruling that would strike down Act subsidies in the 34 states that do not operate their own exchanges.
The plaintiffs in the King case argued that subsidies can only be to consumers who live in states that have “established” their own exchanges for the purchase .
The administration counters that, despite the law’s repeated use the phrase “established by the state,” the clear intent the was to make subsidies also available to consumers in states that don’t operate their own websites and instead use the federal exchange.
A decision by the Justices is expected before July. The Obama administration has not announced any contingency in the event the court rules against it.
If subsidies are barred, the administration has stated, millions lower-income Americans in the 34 state would be unable to afford . Insurers would have fewer healthy customers, but would still have to sell to individuals with serious medical issues without charging them higher premiums, putting their financial stability at risk.
According to the newspaper article, state officials “flew to Chicago in early May for a secret 24- meeting.” Although the article did not disclose the date the meeting or the precise number states represented by the attendees, the reporters learned such specifics such as that the agenda included an evening reception, a presentations and a Mexican buffet dinner.
At the close the meeting, according to the newspaper, “some those officials concluded their are likely unworkable.”
The states without exchanges could not quickly set up websites, given their and complexity, participants in the meeting told the Journal reporters. In addition, the officials “said it was extremely unlikely” that state governors, legislators and commissioners could quickly agree on a course action that would preserve existing subsidies for residents their states.
Even if the federal government agreed to hand over to the states the software that powers its website at no , many Republican-dominated state legislatures, and some Republican governors, would likely object to implementing the exchanges, the reporters noted.
The article stated the Milbank Memorial Fund, a -policy foundation, organized the meeting and covered the plane fare and hotel rooms for the state officials.