High-Risk Pools for People with Preexisting Conditions: A Refresher Course

http://www.commonwealthfund.org/publications/blog/2017/mar/high-risk-pools-preexisting-conditions?omnicid=1196155&mid=henrykotula@yahoo.com

During the recent effort to repeal and replace the Affordable Care Act (ACA), some members of Congress and the Trump administration seemed to be experiencing a certain nostalgia for high-risk pools, which operated in 35 states before the ACA was enacted. At a CNN Town Hall Meeting in January, Speaker of the House Paul Ryan responded to a question about coverage for people with preexisting conditions by saying:

We believe that state high-risk pools are a smart way of guaranteeing coverage for people with preexisting conditions. We had a really good one in Wisconsin. Utah had a great one . . . . What I mean when I say this is, about 8 percent of all the people under 65 have that kind of preexisting condition . . . . So, by financing state high-risk pools to guarantee people get affordable coverage when they have a preexisting condition, what you’re doing is, you’re dramatically lowering the price of insurance for everybody else. So, if we say let’s just, as taxpayers—and I agree with this—finance the coverage for those 8 percent of Americans under 65 in a condition like yours, they don’t have to be covered or paid for by their small business or their insurer who is buying the rates for the rest of the people in their insured pool, and you’d dramatically lower the price for the other 92 percent of Americans.

As high-risk pools and other changes to the ACA continue to be debated, it is critical to deconstruct statements such as these and remind ourselves of how high-risk pools really worked and how unaffordable they were. It is important to remember that high rates of uninsurance and lack of affordability for all buyers in the individual market existed before the ACA, even in states with high-risk pools. In addition, policymakers seem to substantially underestimate the number of Americans with preexisting conditions who might be forced to purchase coverage through a high-risk pool if insurers are allowed to deny coverage in the marketplace.

Reality Check

The reality is that high-risk pool coverage was prohibitively expensive and there is little evidence to suggest that the existence of such pools made coverage less costly for others in the individual insurance market. Without substantially more federal funding than currently proposed, these facts are not likely to change. People with preexisting conditions may have “access” to coverage, but most will not be able to afford it and those who can will face limited benefits and extremely high deductibles and out-of-pocket payments.

Obamacare repeal bill is the zombie GOP can’t kill — or bring back to life

http://www.politico.com/story/2017/04/obamacare-repeal-bill-gop-zombie-237215

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Republicans in Congress for the first time are lowering expectations for how much of Obamacare they can repeal and how quickly they can do it.

As they meet constituents back home, GOP lawmakers seem trapped between the reality of their failed repeal effort and President Donald Trump’s renewed promises this week to finish off Obamacare before taking on tax reform. Vice President Mike Pence is also still trying to keep the repeal dream alive, working with conservatives on new tweaks to the stalled House bill. But even if the ultra-conservatives come on board, there’s no sign that the moderate Republicans needed to pass a bill are ready to sign on.

Those dynamics mean the Obamacare repeal effort that has helped define the Republican Party for seven years may live on in a sort of political purgatory — with no one willing to pull the plug even though there are few signs of life. The uncertainty created by that zombie state could compel health insurers to stop offering coverage in the exchanges next year, paralyze action on other legislative priorities on Capitol Hill and come back to haunt Republicans at the polls in 2018.

Lawmakers back in their districts during their first recess since the collapse of the House effort are downplaying the repeal agenda as if the rallying cry to eliminate the law “root and branch” has been pared down to some leaves. Some constituents are conveying their displeasure.

Joe Barton (R-Texas), a Freedom Caucus member, was confronted at a town hall meeting Tuesday by a self-described Republican who blasted the GOP for not repealing all of Obamacare on “Day One of the Trump administration.”

 

Trump Threatens Health Subsidies to Force Democrats to Bargain

In the weeks since President Trump’s attempts to replace the Affordable Care Act collapsed, the administration has debated what to do: Try again? Shore up the insurance marketplaces? Or let the whole system collapse?

Mr. Trump has failed to get enough support from his own party, but he hopes to get the Democrats’ help by forcing them to the negotiating table with hints about the chaos he could cause.

His bargaining chip is the government subsidies paid to insurance companies so they can reduce deductibles and other out-of-pocket costs for low-income consumers — seven million people this year.

In an interview with The Wall Street Journal this week, Mr. Trump threatened to withhold the subsidy payments as a way to induce the Democrats to bargain with him.

For now, Democrats are resisting and using his maneuver against him to energize their own party. And they warn that Mr. Trump will be blamed if the insurance markets collapse and people lose coverage next year.

“Republicans are in control of government,” Senator Claire McCaskill, Democrat of Missouri, said Thursday after a town-hall-style meeting in her home state. “If they blow up what access to health care there is right now, they’re going to own it.”

The president’s tone differs from that of Republicans in Congress, who have repeatedly promised a smooth transition away from the law they call Obamacare. “We don’t want to pull the rug out from under people,” the House speaker, Paul D. Ryan, has said.

If the subsidies are interrupted, insurers say, some health plans will increase premiums and others will withdraw from the individual insurance market. That will, in turn, affect millions of other people who do not receive the subsidies.

The issue could come to a head within weeks. When the House reconvenes on April 25, the first order of business will be a spending bill to replace the current stopgap law, which expires three days later. Democrats are determined to put money for the health insurance subsidies into that bill, and some Republicans on the House and Senate Appropriations Committees are open to the idea. But ultimately, the decision will be made by Republican leaders in the two chambers.

If the spending is allowed to continue, the Congressional Budget Office estimates that the federal government will pay $135 billion in cost-sharing subsidies to insurers from 2018 to 2027.

The cloud of uncertainty swirling around the subsidies stems from a court ruling in a lawsuit that House Republicans filed against the Obama administration in 2014. Judge Rosemary M. Collyer of the Federal District Court in Washington ruled last year that spending on the subsidies “violates the Constitution” because Congress never appropriated money for them. She ordered a halt to the payments, but suspended her order to allow the government to appeal.

The Trump administration has not made clear whether it will press the appeal filed by the Obama administration. In a letter to Mr. Trump this week, the U.S. Chamber of Commerce joined the American Medical Association, the American Hospital Association and insurers in seeking “quick action” to guarantee continuation of the subsidies. Without the subsidies, they said, more people will be uninsured and unable to pay medical bills.

Democrats say they will not negotiate with Mr. Trump until he stops his drive to repeal the Affordable Care Act. “President Trump is threatening to hold hostage health care for millions of Americans, many of whom voted for him, to achieve a political goal of repeal that would take health care away from millions more,” said the Senate Democratic leader, Chuck Schumer of New York.

 

 

What Now? Healthcare or Tax Reform

GOP wrestles with big question: What now?

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Republicans at both ends of Pennsylvania Avenue are facing a big question this spring: What now?

As President Trump approaches his 100-day mark at the end of this month, congressional Republicans have few accomplishments to point to and are divided over how to proceed on his two biggest priorities: healthcare and tax reform.

Congress is at the start of a two-week recess, and lawmakers say they will listen to feedback from constituents as they mull the next legislative steps of 2017. The internal debate boils down to whether they should stick to their strategy of working strictly along party lines to pass big-ticket bills or try to find common ground with Democrats, perhaps on smaller proposals.

Republicans are divided over whether to take another shot at healthcare reform, which failed in the House last month, or move on to tax reform.

 

What Trump Can Do Without Congress to Dismantle Obamacare

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House Republicans left for spring break last week, without reaching a deal to repeal and replace the Affordable Care Act. Their bill to overhaul the health care system collapsed on the House floor last month, amid divisions in the caucus.

Even without Congress, however, President Trump has the authority to modify important provisions of the health law, including many that House Republicans sought to change or repeal. Here are some examples of actions he could take (or has already taken):

ACA Cost-Sharing Subsidies: How One Decision Could Disrupt Obamacare Marketplaces

Web Briefing for Journalists – ACA Cost-Sharing Subsidies: How One Decision Could Disrupt Obamacare Marketplaces

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Premiums, insurer choice, and overall stability of 2018 Affordable Care Act (ACA) marketplaces could be affected by decisions from Congress and the Trump Administration on the health law’s cost-sharing reduction provision. With a legal appeal pending on a lawsuit from the U.S. House, the federal government and Congress are in a position to choose whether to continue reimbursing insurers for the subsidies, which were established as part of the ACA to reduce out-of-pocket costs for lower-income people buying plans through the marketplaces. Failure to continue the payments would not only disrupt the marketplaces, but it also might signal a more obstructionist approach to the ACA, following House Republicans’ failed attempt at repeal. Continuing the payments could help to avoid further exits and premium increases by insurers.

On Thursday, April 6, the Kaiser Family Foundation hosted a web briefing for the media to explain how the cost-sharing reduction program works, where it stands now, and how consumers could be affected by either choice from the federal government. Panelists presented new analysis on the magnitude of the cost-sharing payments and how much premiums would have to rise in different states to compensate for insurers’ loss of federal funding.

Panelists included Gary Claxton and Larry Levitt, co-executive directors of the Foundation’s Study of Health Reform and Private Insurance. Rakesh Singh, the Foundation’s vice president of communications, moderated the discussion.

 

A warning from the polls about letting Obamacare “explode”

https://www.axios.com/a-warning-from-the-polls-about-letting-obamacare-explode-2347777457.html

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President Trump has said the Democrats will take the fall politically if and when Obamacare “explodes.” But new polling shows that the public will hold Trump and the GOP accountable for failing to address problems in the marketplaces, not the Democrats. That means they’ll have to think twice about some of the moves they might make that could make the Affordable Care Act’s problems worse.

What’s on the line: The polling has direct implications for some of the specific actions Republicans could take, or not take, in the months ahead:

  • Eliminating the $7 billion in federal cost sharing subsidies to insurers to compensate them for providing smaller deductibles to lower income enrollees.
  • No longer enforcing the individual mandate that helps get younger, healthier people into the insurance pools to lower premium costs.
  • No longer marketing the healthcare.gov plans to boost enrollment.

These steps would cause insurers to exit the non-group market, cause premiums to spike, and could leave millions without affordable coverage.

As the chart from our latest tracking poll shows, 62% of the public say Trump and the Republicans in Congress are in charge of the government and are responsible for problems with the ACA from now on; just 31% say President Obama and the Democrats are responsible. As is always the case with the ACA, there are party differences; 81% of Democrats and 65% of Independents said Trump and the Republicans “own it”, but just 35% of Republicans feel that way.

Trump has also said that the collapse of the ACA would bring Democrats to the table to forge a new “deal” with him on health care. That’s not impossible, but it seems unlikely: it’s hard to think of a single major element of health reform where the Democrats agree with the president and the Republicans.

As we saw when the Freedom Caucus refused to support the American Health Care Act because it wasn’t conservative enough for them, the substance and the details matter to policymakers far more than they appear to the President. He has suggested that he mostly wants a deal on health care.

Basic rules of politics seem to be holding up pretty well in the fights over the ACA. One rule, that benefits once conferred on the American people cannot be taken away, was a primary reason for the collapse of the GOP health care plan. The other: If severe problems develop in the marketplaces, or are caused by actions the administration takes to undermine the law, the party in charge gets the blame.

 

 

Why So Hard to Kill the Affordable Care Act?

https://www.medpagetoday.com/Washington-Watch/repeal-and-replace/64426?xid=nl_mpt_DHE_2017-04-07&eun=g1061559d0r&pos=0

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For years, Republicans vowed that if they ever got control of the White House and both houses of Congress, the Affordable Care Act would quickly end up in the trash heap. As of January 20, those pieces were firmly in place.

Yet nearly 3 months later, the GOP appears no closer to enacting a repeal-and-replace bill than they were when Barack Obama was sitting in the Oval Office.

House Republican leaders have been unable to forge a consensus among its conservative and moderate wings as to what should come after the ACA. One bill had to be pulled from a floor vote when it became clear that neither the GOP’s Freedom Caucus nor Democrats would support it. And, earlier this week, a push led by top administration officials to appease the Republican conservatives — by making certain ACA elements retained in the GOP plan optional for states — was quickly declared dead on arrival.

MedPage Today asked physicians and policy experts why President Obama’s signature legislation is so hard to kill and whether Republicans might give up trying.

“Advocacy against the AHCA [American Health Care Act, the GOP’s initial repeal-and-replace bill] was broad and intense, with health care and public health organizations repeatedly raising concerns about health insurance coverage, access, and costs, including proposed dramatic changes to Medicaid funding that would preferentially hurt low-income people (including children), and risks of coverage gaps for those with chronic and pre-existing conditions,” wrote Jan Carney, MD, MPH, associate dean for public health and professor of medicine at the University of Vermont in Burlington, Vt., in an email.

Carney underscored the importance of the Congressional Budget Office’s report projecting a dramatic increase in the number of uninsured Americans — 14 million more in 2018 and 24 million more in 2026.

She also highlighted an April 4 Kaiser Family Foundation poll, which found 75% of Americans felt that Congress should work on fixing the ACA instead of repealing it.

 

 

GOP Owns Health Care Dilemma Now, and Voter Skepticism

https://www.nytimes.com/aponline/2017/04/10/us/politics/ap-us-health-overhaul-shifting-focus.html

 

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Move over, “Obamacare.” The health care debate has shifted to ideas from President Donald Trump and GOP lawmakers in Congress, and most people don’t like what they see.

With Republicans in command, their health care proposals as currently formulated have generated far more concern than enthusiasm.

Even among rank-and-file Republicans, there’s opposition to changes that would let insurers charge higher premiums to older adults, and many disapprove of cuts to Medicaid for low-income people, according to a recent poll by The Associated Press-NORC Center for Public Affairs Research. It also found more than half of Republicans at least somewhat worried about leaving more people uninsured, as the House plan is projected to do.

March polls by Fox News and Quinnipiac University showed overall margins of opposition to the GOP bill nearing or even exceeding those of the Obama-era Affordable Care Act, or ACA, at its lowest points — such as when the HealthCare.gov website went live in 2013 and promptly crashed.

“Republicans are taking ownership of the health care issue, and all the pleasure and pain of health reform,” said Drew Altman, president of the nonpartisan Kaiser Family Foundation, which tracks the health care system. “There has been a shift in focus from the ACA itself to the Republican plans, and who might lose benefits as a result.”

Highlighting the stakes, the uninsured rate among U.S. adults rose slightly in the first three months of this year, according to Monday’s update of a major ongoing survey. The Gallup-Healthways Well-Being Index found that 11.3 percent of adults were uninsured, an increase from 10.9 percent in the last two calendar quarters of 2016.

“Only time will tell” if the uptick means the U.S. is again losing ground on health insurance, said survey director Dan Witters.

“A lot of uncertainty has been introduced into the marketplace through efforts to repeal,” Witters added. “That will scare people off who have real reason to believe that the ACA won’t even exist in a year. Plus premiums are now realizing a big jump for the first time in the ACA era, so some folks may be priced out of the market even with income-based subsidies.”

Trump came into office with big, bold promises. In a Washington Post interview shortly before his inauguration he declared his goal was “insurance for everybody,” hand-in-hand with affordable coverage, “lower numbers, much lower deductibles.” Although Trump said he’d soon release a plan, none appeared.

Instead, after weeks of laboring behind closed doors, House Republican leaders rolled out a proposal March 6 that the president enthusiastically embraced. But all the efforts of the White House and congressional leadership haven’t convinced GOP lawmakers to pass it. Congress is on a two-week break with the bill in limbo.

Frustrated, Trump is seeing his promise slip away to quickly repeal “Obamacare” and replace it with something better. Instead he could get left as the caretaker of the ACA, a law he’s repeatedly called a “disaster” on account of rising premiums and insurer exits that diminish consumer choice in many communities.

Trump’s personal image has taken a blow, with the AP-NORC poll finding that he gets his worst rating on health care. About 6 in 10 people disapprove of how the president has handled the issue.

“It is a major failure that a high priority of President Trump and the congressional Republican leadership leads to no bill, and the bill as proposed becomes unpopular even among their own voters,” said Robert Blendon, a professor at the Harvard T.H. Chan School of Public Health, who follows opinion trends on health care. “It’s a real leadership crisis issue.”

Amid disapproval of the House GOP plan, some polls have shown improved ratings for the ACA. Gallup, for example, found “Obamacare” gained majority approval for the first time. But Republican voters remain overwhelmingly opposed to former President Barack Obama’s signature law and want it repealed.

Nonetheless, there’s recent evidence that Republicans differ among themselves about what “repeal” may mean.

A Quinnipiac poll last month found that 55 percent of Republicans said Trump and the Republican-led Congress should repeal “parts” of the ACA, while 42 percent said “all” of it should go. Only 2 percent of Republicans said the law should not be repealed.

Republican views compare with 50 percent of the general public who say parts of the ACA should be repealed, 20 percent who say all of it should be repealed, and 27 percent who say it should remain.

The divisions among rank-and-file Republicans appear to mirror those in the House, where disagreements among hardliners and moderates are keeping Speaker Paul Ryan, R-Wis., from taking the bill to the floor.

Tim Malloy, assistant director of the Quinnipiac poll, said, “You have to figure a lot of people who voted for Trump are on Obamacare.”

No ‘Death Spiral’: Insurers May Soon Profit From Obamacare Plans, Analysis Finds

In contrast to the dire pronouncements from President Trump and other Republicans, the demise of the individual insurance market seems greatly exaggerated, according to a new financial analysis released Friday.

The analysis, by Standard & Poor’s, looked at the performance of many Blue Cross plans in nearly three dozen states since President Barack Obama’s health care law took effect three years ago. It shows the insurers significantly reduced their losses last year, are likely to break even this year and that most could profit — albeit some in the single-digits — in 2018. The insurers cover more than five million people in the individual market.

After years in which many insurers lost money, then lost even more in 2015, “we are seeing the first signs in 2016 that this market could be manageable for most health insurers,” the Standard & Poor’s analysts said. The “market is not in a ‘death spiral,’ ” they said.

It is the latest evidence that the existing law has not crippled the market where individuals can buy health coverage, although several insurers have pulled out of some markets, including two in Iowa just this week. They and other industry specialists have cited the uncertainty surrounding the Congressional debate over the law, and the failed effort two weeks ago by House Republicans to bring a bill to the floor for a vote.

The House G.O.P. leadership went home for a two-week recess on Thursday, unable to reach a compromise between conservative and moderate members over the extent of coverage that should be required for the very sick.

If the markets were to falter without a resolution in Congress, the risk of eroding public opinion before the midterm elections next year is bound to increase. The latest monthly Kaiser Health Tracking Poll by the Kaiser Family Foundation showed that more than half of Americans now believe that the president and Republicans own the health care issue and may shoulder the blame for any failings. The survey reported that more than half now support the Obama health care law.

The S.&P. report also buttresses the analysis of the Republican bill by the Congressional Budget Office, which said the markets were relatively stable under the current law, contradicting some Republican assessments of volatility.

“Things are getting better,” Gary Claxton, a vice president at the Kaiser Family Foundation, said of the insurance markets. The foundation has been closely tracking the insurers’ progress.

Although it took longer than expected, the insurers appear to be starting to understand how the new individual market works, said Deep Banerjee, an S.&P. credit analyst who helped write the report. The companies have aggressively increased their prices, so they are now largely covering their medical costs, Mr. Banerjee said. They have also significantly narrowed their networks to include fewer doctors and hospitals as a way to lower those costs.