The recent opinion from the Supreme Court on King vs. Burwell reminds me of the old Texas phrase “Big Hat… No Cattle” It was used to describe someone who wanted to play the role of a big influential cattleman but in actuality had no cattle. There have been 50 votes in the house, 2 major lawsuits and an outcry to change the Affordable Care Act. But Congress (now that Republicans control both houses) won’t either through a formal vote or through budget allocation processes in the senate work to defund or repeal this law. All I can say is “Big Hat…No Cattle”.
At this point it is important to remember that the subsidies offered to the “State” by the federal government is for 3 years only. Meaning that the funding then transfers to the states budgets after this 3 year period. This was a fundamental reason that many Governors chose not to implement the program. The coming combination of rate increases, the burden of funding to change to states and the reporting requirements and penalties many employers will be facing will compel change, or denial and increased funding, I am not sure which one but just remember “Big Hat…No Cattle”.