The impact of ObamaCare on doctors and patients, companies inside and outside the health sector, and American workers and taxpayers
Is the new House Republican plan to replace Obamacare politically viable? Two factors weigh in the plan’s favor: First, after the administration sold Obamacare as a program for middle-class families who were anxious about losing their coverage if something went wrong, Democrats delivered a plan that made a lot of middle-class families worse off, and few of them better off. Second, the continuing problems in the insurance exchanges mean we remain at risk of seeing the number of uninsured start to march back upward, as unsubsidized consumers start to drop their high-priced, high-deductible, narrow-network insurance.
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Today, after years of hearings and speeches and debates, the Paul Ryan-led House of Representatives has done something it has not done before: it has released a comprehensive, 37-page proposal to reform nearly every federal health care program, including Medicare, Medicaid, and Obamacare. No proposal is perfect—and we’ll get to the Ryan plan’s imperfections—but, all in all, we would have a far better health care system with the Ryan plan than we do today.
The first thing to know about the Ryan-led plan — part of a group of proposals called “A Better Way” — is that it’s not a bill written in legislative language. Nor is it a plan that has been endorsed by every House Republican.
Instead, it’s a 37-page white paper which describes, in a fair amount of detail, a kind of “conversation starter” that House GOP leadership hopes to have with its rank-and-file members, and with the public, in order to consolidate support around a more market-based approach to health reform.
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A House Republican alternative to Obamacare is coming this week, and some reports suggest it will include a refundable tax credit to subsidize health insurance. This would present some tough political and policy choices about whether and how to pay for a new program of tax credits.
Changing the tax treatment of employer-provided health insurance could provide one of the largest potential sources of financing for a new refundable credit. It also would bring hefty trade-offs. On the political side, capping the deductibility of employer-based health plans to finance refundable credits that are considered government spending would not please some Republicans. Put another way: Repealing Obamacare’s tax increases to replace them with other revenue increases is unlikely to go over well with conservative voters.
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Democrats should push for universal health coverage ahead of the November election, several health care advocates urged the committee drafting the Democratic National Committee’s platform at a recent session focused on health policy.
Their liberal health care proposals echo a similar theme from an environment-themed session the same day, in which activists criticized DNC members for not pushing harder on climate change.
The hearing was part of a series of regional events held by the Democratic Platform Drafting Committee “designed to engage every voice in the party.”
Too many people are still uninsured six years after the passage of the Affordable Care Act, said many of the advocates who spoke before the committee in Phoenix on Friday. Still more are underinsured, they said, and people are struggling to pay for rising premiums and to afford prescription drugs.
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A federal judge recently ruled that the Obama administration violated the Constitution by spending $7 billion on subsidies for insurance companies without Congress’s permission. Worse still, the administration knew all along that it was flouting the law.
If the ruling is upheld, Americans will face higher premiums and fewer choices in the health insurance market. If it comes to that, they’ll have President Obama to thank.
At issue are the Affordable Care Act’s “cost-sharing reduction” subsidies. Obamacare’s “essential benefits” mandates require all exchange policies to cover a long list of services, from maternity care to substance abuse treatment to speech pathology counseling. In a normal market, insurers would charge patients higher premiums, deductibles, and copayments to cover the costs of these extensive benefits.
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Medicaid payments to hospitals and other providers play an important role in these providers’ finances, which can affect beneficiaries’ access to care. Medicaid hospital payments include base payments set by states or health plans and supplemental payments. Estimates of overall Medicaid payment to hospitals as a share of costs vary but range from 90% to 107%. While base Medicaid payments are typically below cost, the use of supplemental payments can increase payments above costs. Changes related to expanded coverage under the Affordable Care Act as well as other changes related to Medicaid supplemental payments could have important implications for Medicaid payments to hospitals. This brief provides an overview of Medicaid payments for hospitals and explores the implications of the ACA Medicaid expansion as well as payment policy changes on hospital finances.
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Clinton says she wants to “build on” Obamacare — the very law that has failed to provide affordable, quality healthcare to millions of Americans. She believes that more government — more mandates, more regulations, more subsidies — will do the trick.
And if her initial reform plan fails, she has her next move planned: a government take-over of the healthcare sector.
Obamacare requires all policies sold on the exchanges to cover numerous benefits, like maternity care or substance abuse treatment. But these extras aren’t free. To cover their cost, insurers have had to raise premiums.
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Former House Speaker Newt Gingrich remembers the day 23 years ago when Hillary Clinton, notebook in hand, came to see him and other senior Republicans to talk about “Hillarycare.”
It was early 1993. Clinton, on behalf of her husband, then-President Bill Clinton, was leading a healthcare reform drive that vaulted her onto the national stage.
Hillarycare would famously collapse after a fierce debate. In interviews with Reuters, some participants looked back on it as a crucible for the Democratic presidential front-runner that helped shape her approach to politics and governing.
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A proposed Medicare experiment encouraging doctors to use cheaper meds is either a necessary fix for America’s high drug prices — or the first step to President Donald Trump dismantling Obamacare.
It all depends whom you ask. And experts interviewed for POLITICO’s “Pulse Check” podcast showed the sides couldn’t be further apart.
The Obama administration’s Medicare experiment would test whether the program’s payment system encourages doctors to prescribe more expensive drugs, since they’re paid a set percentage of a drug’s price — therefore getting more for a higher-cost drug.
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Consumers are facing the prospect of significant premium increases for health insurance next year and faulty ACA provisions are at least partly to blame.
For example, people have figured out they can get a year’s worth of medical care while paying just nine months of premiums. They also can wait to sign up for health insurance after they get sick and get the care they need. And young people are required to pay much more for health coverage than they expect to need in medical services so many just don’t enroll.
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