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Texas Lawsuit Days of Action: Marketplace Signups & Financial Assistance

By January 17, 2020No Comments

Last month, the Fifth Circuit Court of Appeals ruled in favor of the Trump administration and Republicans in Texas vs. United States, striking down as unconstitutional the ACA’s individual mandate and remanding to the lower court judge a final decision on what parts of the ACA should be eliminated – the very judge who has already ruled the entire law unconstitutional. If President Trump and Republicans have their way, 20 million Americans will lose their insurance coverage, 135 million Americans with pre-existing conditions will be stripped of their protections, and costs will go up for millions. 

“The Fifth Circuit’s disastrous decision on President Trump’s Texas lawsuit puts the health care of millions of Americans at risk. The court’s decision will impact every corner of the American health care system, eliminating both the individual marketplace and financial assistance that helps people purchase health insurance, while ripping coverage away from 20 million Americans across the country,” said Protect Our Care Executive Director Brad Woodhouse. “Over the course of these days of action, we will be reminding Americans what’s really at stake if the courts ultimately overturn the health care law.” 

Days of Action: Day 10 of 11 focuses on Marketplace Signups & Financial Assistance. To learn more about our Days of Action, visit our website.

What’s At Stake:  Marketplace Signups & Financial Assistance

If The Texas Lawsuit Succeeds, The Individual Marketplace And Financial Assistance That Helps Individuals Purchase Health Insurance Will Be Eliminated. 

  • 11 Million People With Comprehensive Insurance Through The ACA Marketplace Could Lose Their Coverage. Without the ACA, more than 11 million people nationwide enrolled in the individual marketplace could lose coverage. 
  • Nine Million People In The Marketplaces Would Pay More For Coverage. Nearly 9 million people would lose financial assistance that helps them purchase health care in the marketplace. In 2019, the average monthly premium tax credit was $514

Thanks To The Republican Lawsuit, 20 Million People Could Lose Their Coverage

  • According to the Urban Institute, 19.9 million people could lose coverage by repealing the Affordable Care Act, meaning the number of uninsured Americans would increase from 30.4 million to 50.3 million, representing a leading to a 65 percent increase in the uninsured rate. As the uninsured rate swells, so will the amount of uncompensated care, which Urban predicts will grow by at least 82 percent.
  • States would lose important federal health care funding — an estimated reduction of $135 billion in the first year. The Urban Institute estimates that a full repeal of the ACA would reduce federal spending on Medicaid/CHIP care and Marketplace subsidies by nearly $135 billion, or 34.6 percent in the first year.
  • Millions of children could lose their coverage. Almost three million children nationwide gained coverage thanks to the ACA. If the law is overturned, many of these children will lose their insurance.
  • More than 5 million Latinos would lose coverage. The percentage of people gaining health insurance under the ACA was higher for Latinos than for any other racial or ethnic group in the country. According to a study from Families USA, 5.4 million Latinos would lose coverage if the lawsuit succeeds in overturning the ACA.