Federal health insurance aid in doubt for nearly 8M

WASHINGTON (AP) — Nearly 8 million people could lose up to $24 billion a year in health insurance subsidies in a Supreme Court case threatening President Barack Obama's law, according to a government report released today.

The estimates by The Associated Press show what's at stake in the case. Health overhaul opponents argue that subsidies are illegal in some three dozen states where the federal government took charge of running the health insurance marketplaces, or exchanges. The justices heard arguments last week, and the court's decision is expected in late June.

The report from the Department of Health and Human Services shows that about 7.7 million people in the 37 states with federally run markets are getting an average of $263 a month to help pay premiums. That works out to about $2 billion a month, although it may drop over the year as the number of people insured fluctuates.

The biggest potential loser would be Florida, with nearly 1.5 million residents getting an average of $294 a month. That works to $440 million a month currently, or up to $5.3 billion a year for the state. The subsidies are delivered in the form of tax credits.

Texas could also face significant exposure. More than 1 million residents are getting an average subsidy of $239 a month. That works out to nearly $2.9 billion a year.