GOP PPACA subsidy plan won’t prevent ‘massive disruption’

Republican Sen. Ron Johnson. (AP Photo/Scott Bauer)

(Bloomberg Politics) — A new analysis of a Republican proposal to temporarily continue PPACA premium subsidies if the Supreme Court erases them warns that it would “only delay” the onset of higher insurance premiums and loss of coverage for potentially millions of Americans.

“Even if a temporary extension of premium subsidies would help avoid disruption in the short term, it is likely that the disruption would be only delayed, not avoided altogether. If the subsidies are ultimately eliminated, potentially millions of individuals will drop coverage and premiums will increase substantially,” the brief by the American Academy of Actuaries said, “unless other equally strong mechanisms are implemented that would encourage participation by a broad cross section of risks.”