King v. Burwell, the case the Supreme Court just agreed to take up, could disrupt a crucial part of the Patient Protection and Affordable Care Act, by blocking federal health-care subsidies in states that refuse to establish their own insurance exchanges.

Could there be a silver lining for liberals if the court decides against the government? I think so, but it's not pretty.

First, let's dispense with the idea that such a ruling would end PPACA. Sure, the outlook would be grim in states that rely on federally run exchanges, where enrollees would end up paying the full cost of their coverage. That would lead the healthy to drop out, and in turn increase costs for everyone else. It's not impossible that the individual insurance markets in those states would collapse.