Overnight Healthcare: ObamaCare back at the Supreme Court

The nine justices of the Supreme Court on Wednesday again hold the future of ObamaCare in their hands as they take up a legal challenge that could strip insurance subsidies from millions of people. The court on Wednesday will hear oral arguments in the GOP-backed healthcare case, King v. Burwell, with the plaintiffs contending that people in 37 states are illegally receiving subsidies through President Obama's signature law. The case hinges on the meaning of four words in the law's text: "established by the state." The challengers argue that a plain English reading of the phrase means that subsidies are invalid in the roughly three dozen states that opted not to set up their own healthcare marketplaces, instead relying on the federal website HealthCare.gov. Administration lawyers argue a literal reading of the phrase is nonsensical and contradicted by the rest of the law, which they say makes clear that subsidies were intended to be available nationwide. The outcome of the case could rest on whether a majority of the justices focus on the four-word phrase, or opt to view it within the broader context of the Affordable Care Act, experts say. Court observers will be keeping a close eye on Chief Justice John Roberts, who was the decisive vote in the previous ObamaCare challenge in 2012, and at Justice Anthony Kennedy, often the swing vote in major cases. GOP LEADERS HAVE A SUBSIDY PROBLEM: House and Senate leaders have proposed temporary financial assistance to ObamaCare customers that would lose their subsidies if the court rules against the Obama administration in King v. Burwell. Now they're trying to explain that their proposed tax credits are different than the subsidies in question by the court. House Ways and Means Chairman Paul Ryan (R-Wis.) said Tuesday that his tax credits are "not at all" like those under the current law. In an interview with Fox News, Ryan countered that the Obama administration's tax credits are actually "thinly veiled subsidies policed by the Internal Revenue Service." Read more here. JINDAL FIRES UP SUBSIDY DEBATE: Louisiana Gov. Bobby Jindal (R) lashed out against the GOP leaders' alternative ObamaCare plans, warning that more subsidies will only make the law "more entrenched." "Some on the right want to snatch defeat from the jaws of victory," Jindal wrote in an op-ed published Tuesday. Jindal's strong opposition to the GOP plans undermine statements this week from Republican leaders, who said they are nearing "consensus" on a way to limit the fallout of the court decision. "Americans would pay billions more in higher taxes to fund the newly-restored subsidies, making ObamaCare that much more entrenched. What self-proclaimed conservative of sound mind would do such a thing?" he wrote. Read more here. BUT KEY CONSERVATIVES ARE OPEN TO SUBSIDY EXTENSION:  A growing list of Republicans – including Sens. Ted Cruz (R-Texas) and Jeff Sessions (R-Ala.), and Rep. Mark Meadows (R-N.C.) – say they are open to the possibility of a stopgap solution for ObamaCare subsidies. That puts them at odds with more hard-lined members of the party, such as Jindal and Rep. Steve King (R-Iowa), who have both strongly opposed the subsidies. Read more here. CRUZ UNVEILS HIS ALTERNATIVE Sen. Ted Cruz (R-Texas) on Tuesday offered the latest in a series of Republican ObamaCare alternatives ahead of a Supreme Court ruling that could gut the law. Cruz's bill, called the Health Care Choices Act, would allow people to buy health insurance across state lines, long a Republican health policy goal. It would also repeal Title I of ObamaCare, which would undo much of the law, including the mandate to buy insurance, the insurance marketplaces and subsidies to help people afford coverage. Read more here. Wednesday's schedule The Supreme Court will hear arguments in King v. Burwell. Reps. Lynn Jenkins (R-Kan.) and James McGovern (D-Mass.), will launch the Hunger Caucus at the DC Central Kitchen. State by state Idaho House approves new medical abortion regulations Citing Texas independence day, GOP leaders demand flexibility on Medicaid Jails are signing inmates up for Medicaid What we're reading Obama strategy in health law case: Have no backup A polarized court, weighing a reversal of the safety net Attorney arguing against Affordable Care Act inspired by Atticus Finch Supreme Court says C-SPAN cannot broadcast Affordable Care Act lawsuit arguments live What you might have missed from The Hill GOP looks to protect employer wellness programs in ObamaCare Dems call for open enrollment for pregnant women Republicans to high court: We have ObamaCare plan Top Dem: GOP sending 'false message' to court with ObamaCare plans Please send tips and comments to Sarah Ferris, sferris@thehill.com, and Peter Sullivan, psullivan@thehill.com. Follow on Twitter: @thehill, @sarahnferris, @PeterSullivan4