Su p r e our e C t he o t nit f U e d St at e s - Supreme Court of the ...

No. 19-840

In the

Supreme Court of the United States

_________

CALIFORNIA, ET AL., Petitioners,

v. TEXAS, ET AL.,

Respondents. _________

On Writ of Certiorari to the United States Court of Appeals

for the Fifth Circuit _________

BRIEF AMICI CURIAE FOR BIPARTISAN ECONOMIC SCHOLARS

IN SUPPORT OF PETITIONERS _________

SHANNA H. RIFKIN JENNER & BLOCK LLP 353 N. Clark Street Chicago, IL 60654

May 13, 2020

MATTHEW S. HELLMAN Counsel of Record

JENNER & BLOCK LLP 1099 New York Avenue, NW Washington, DC 20001 (202) 639-6000 mhellman@

i TABLE OF CONTENTS

TABLE OF AUTHORITIES ......................................... iii

INTEREST OF AMICI CURIAE ..................................1

INTRODUCTION AND SUMMARY OF ARGUMENT ....................................................................... 3

ARGUMENT ....................................................................... 5

I. The Fifth Circuit's Severability Analysis Lacks Any Economic Foundation And Would Cause Egregious Harm To Those Currently Enrolled In Medicaid And Private Individual Market Insurance As Well As Health Care Providers. .......................................................................5

A. Economic Data Establish That The ACA Markets Can Operate Without The Mandate. ...................................................................5

B. There Is No Economic Reason Why Congress Would Have Wanted The Myriad Other Provisions In The ACA To Be Invalidated........................................................10

II. Because The ACA Can Operate Effectively Without A Mandate, Invalidating The Act Would Have Dire Consequences For Millions Of Individuals And Other Stakeholders In The Health Care Sector..............................................14

A. Invalidating The ACA Would Undo The ACA's Increased Access To Affordable Health Insurance And Healthcare Services. .................................................................. 14

ii 1. Economic Modelling Shows That Even

Before The COVID-19 Pandemic, Invalidating The ACA Would Have Eliminated Or Reduced Access To Health Care For Tens Of Millions Of Americans. ........................................................ 14

2. These Enormous Harms Would Be Exacerbated In The Context Of The COVID-19 Pandemic. .....................................19

B. Striking Down The ACA Will Also Have Drastic Consequences On Healthcare Markets And The Healthcare Industry. ............21

CONCLUSION .................................................................27

APPENDIX ? LIST OF AMICI CURIAE ................A-1

iii TABLE OF AUTHORITIES

CASES

Alaska Airlines, Inc. v. Brock, 480 U.S. 678 (1987).......................................................................... 10

Champlin Refining Co. v. Corporation Commission of Oklahoma, 286 U.S. 210 (1932).......................................................................... 10

King v. Burwell, 135 S. Ct. 2480 (2015) ....................... 2

LEGISLATIVE MATERIALS

Continuation of Open Executive Session to Consider an Original Bill Entitled the "Tax Cuts and Jobs Act": Hearing Before the S. Comm. On Fin., 115th Cong. (Nov. 15, 2017), media/doc/11-15-17%20--%20The%20Tax% 20Cuts%20and%20Jobs%20Act%20--%20D ay%203.pdf ...............................................................6-7

PROFESSIONAL JOURNALS

American Hospital Ass'n, Trend Watch: The Opportunities and Challenges for Rural Hospitals in an Era of Health Reform (Apr. 2011), 18-03/11apr-tw-rural.pdf ......................................... 24

Fredric Blavin, Robert Wood Johnson Foundation & Urban Institute, How Has the ACA Changed Finances for Different Types of Hospitals? Updated Insights from 2015 Cost Report Data (Apr. 2017), https:// content/dam/farm/reports/is sue_briefs/2017/rwjf436310 .................................... 24

iv Linda J. Blumberg et al., Robert Wood

Johnson Foundation & Urban Institute, Potential Eligibility for Medicaid, CHIP, and Marketplace Subsidies among Workers Losing Jobs in Industries Vulnerable to High Levels of COVID-19-Related Unemployment (Apr. 2020), sites/default/files/publication/10211 5/potential-eligibility-for-medicaid-chip-and -marketplace-subsidies-among-workers-los ing-jobs-in-industries-vulnerable-to-high-le vels-of-covid-19-related-unemployment_0 .pdf.............................................................................. 20

Linda J. Blumberg et al., Urban Institute, State-by-State Estimates of the Coverage and Funding Consequences of Full Repeal of the ACA (Mar. 2019), . org/sites/default/files/publication/100000/re peal_of_the_aca_by_state_2.pdf .............. 8, 9, 18, 22

Matthew Buettgens et al., Robert Wood Johnson Foundation & Urban Institute, The Cost of ACA Repeal (June 2016), w.sites/default/files/publication/8 1296/2000806-The-Cost-of-the-ACA-Repeal .pdf.............................................................................. 26

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