Should the U.S. Supreme Court ruling in King v. Burwell go against the Obamaadministration, the fallout will hit small businesses especially hard.

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This is what Linda Blumberg, senior fellow at the UrbanInstitute, planned to tell a U.S. Senate committee today, accordingto the news portal The Hill.

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While 7.5 million will likely lose insurance subsidies if the court rulesthat subsidies are illegal, premiums will jump substantially for3.5 million individuals and families employed by small businesses,Blumberg’s testimony said.

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That’s mainly because those who depend upon a subsidy forobtaining insurance through a state-run exchange will probably dropcoverage if they are healthy. This effect will disrupt theinsurance markets, sending premiums upward for all, including those insmall businesses.

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The Hill said the committee’s chair, U.S. Sen. David Vitter(R-La.), agreed with Blumberg, but said there are alternativesbeing considered that would accomplish virtually the same outcomeas the subsidy to consumers, including “an advanceable tax creditthat actually flows directly from the government into the pocketsof the insurance company, not into the hands of the consumer.”

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The hearing at which Blumberg is schedule to testify wasconvened, Vitter told The Hill, to “help those who may be caught inthe lurch if the Court sides with the plaintiff and throws down thegauntlet to the administration.”

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.