If the Supreme Court rules against the Obama administration in the case over state exchange subsidies, hearings for which began Wednesday, chaos could ensure, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV
So if the Court rules against the state subsidies, is it a nightmare ready to happen? "It sure is," the Newsmax Financial Braintrust member told Newsmax TV's "MidPoint" show.
"They estimate that 6 million people wouldn't be able to afford their premium and would stop paying. Insurance companies would still be on the hook, and the only people left would be the sick people, which would drive up premiums."
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That would mean a huge premium increase in 2016, not only on people who purchase insurance through Obamacare exchanges, but for "the entire private market," Hutchinson explained. "You could see this whole Obamacare regime collapse over this."
Given that insurance companies wouldn't be able to raise their prices for 2015 by the time the Court issues its decision — likely June or July —this could put some insurance companies out of business.
"Some of the smaller ones very well might [go out of business], not the larger ones that have more diversified business. It could be a big mess."
Supreme Court justices appear divided over the case, and Chief Justice John Roberts and Justice Anthony Kennedy will likely cast the deciding votes.
Roberts produced the key vote to sustain Obamacare when the Court ruled on it in 2012. He didn't ask many questions Wednesday or tip his hand as to how he will vote, Bloomberg
Kennedy, who voted against Obamacare in 2012, queried both sides in the hearing. He said permitting tax subsidies only in the 16 states that use the federal Obamacare insurance exchanges would create a "serious constitutional problem," according to Bloomberg.
About Tom Hutchinson
Tom Hutchinson is a member of the Newsmax Financial Brain Trust. Click Here to read more of his articles. He is also the editor of The High Income Factor. Discover more by Clicking Here Now
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