Insurance Subsidies Help Everyone

Studies suggest that if the ACA subsidies are repealed, as the plaintiffs in King v Burwellseek to do for states that did not set up their own exchanges, then the pre-subsidy premiums for insurance plans on the ACA exchanges would increase dramatically. If you are unfamiliar with the concept of adverse selection, this may surprise you because we normally think of subsidies as increasing pre-subsidy prices due to increased demand. What gives?

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