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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.

Subsidies in Federally Run Exchanges

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Question: I run a small business with 30 employees who live in 5 different states. Most of them will probably qualify for premium subsidies, but I’m concerned about those that live in states that will have federally run exchanges like Texas for instance. Will they be eligible for subsidies? I’ve heard no.

Answer: Yes. Just last week, the Congressional Budget Office (CBO) released a letter to the House Oversight Government Reform Committee Chair Darrell Issa saying that it never considered that the subsidies might only be available in states operating their own exchanges. CBO Director Doug Elmendorf said in the letter, “the issue [had not been] raised during considering of earlier versions of the legislation in 2009 and 2010, when CBO had anticipated, in its analysis, that the credits would be available in every state.

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