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Supreme Court Decision Could Impact the Future of Obamacare

The Supreme Court hears a case Wednesday that could have a major impact on the future of the Affordable Care Act. 

The Court will hear arguments on whether people on the federal health insurance exchange can continue to receive subsidized coverage.

Since New York has its own exchange the high court’s decision wouldn’t immediately affect how the ACA works in the state.

But, if an estimated 5.5 million Americans in 34 states without exchange lose their subsidies, the ripple effect could touch New Yorkers.

Obamacare requires everyone to have insurance, unless the cost of coverage is more than 8 percent of your income. If too many people leave the insurance rolls, costs will rise.

Patrick Pallano is an attorney at Pallano and Farrow. He says a nationwide increase in insurance costs puts the ACA in jeopardy even in states with their own marketplaces.

"The individual market rates in New York could increase and make it more expensive for people to buy coverage. Then a lot of insurance companies could decide to pull out of the state exchange."

But Pallano says a decision that does away with federal subsidies won’t necessary spell bad news for Obamacare.

"It could lead to other things. It could lead to more state exchanges. It could lead to a lot of different, other options that could actually be better ultimately."

A decision in the case is expected this summer.