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Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Could the Exchange Survive Without Federal Subsidies?

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Question: If the Republicans win in November and successfully cut off funding for Obamacare, will the Exchange survive?

Answer: Republicans have indicated they will seek to repeal the law if they win the White House and Congress in the November election. Whether they can actually do that remains to be seen, but uncertainties about federal funding for the Exchange challenge its viability. Federal subsidies are the Exchange’s main attraction, its “killer app” if you will. Experts agree that the Exchange could work without federal subsidies, but it wouldn’t attract nearly as many people.

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