Reversal: Some Republicans now defending parts of ObamaCare

Reversal: Some Republicans now defending parts of ObamaCare

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The House’s debate over repealing ObamaCare has had an unintended effect: Republicans are now defending key elements of President Obama’s health law.

Many House Republicans are now defending ObamaCare’s protections for people with pre-existing conditions, in the face of an effort by the conservative House Freedom Caucus to repeal them.

Some Republican lawmakers are also speaking out in favor of ObamaCare’s expansion of Medicaid and its mandates that insurance plans cover services such as mental health and prescription drugs.

Rep. Patrick McHenry (R-N.C.), the GOP’s chief deputy whip, said Wednesday that the Freedom Caucus’s calls for states to be able to apply for waivers to repeal pre-existing condition protections are “a bridge too far for our members.”

Those ObamaCare protections include what is known as community rating, which prevents insurers from charging higher premiums to people with pre-existing conditions, and guaranteed issue, which prevents insurers from outright denying coverage to them.

McHenry spoke in personal terms about the importance of keeping in place those Affordable Care Act (ACA) provisions, contained in Title I of the law.

“If you look at the key provisions of Title I, it affects a cross section of our conference based off of their experience and the stories they know from their constituents and their understanding of policy,” McHenry said.

“My family history is really bad, and so my understanding of the impact of insurance regs are real, and I believe I’m a conservative, so I look at this, understand the impact of regulation, but also the impact of really bad practices in the insurance marketplace prior to the ACA passing,” he continued. “There are a lot of provisions that I’ve campaigned on for four election cycles that are part of the law now that I want to preserve.”

McHenry’s defense of those ObamaCare pre-existing condition protections is striking because just last year, House Republicans touted a healthcare plan, called A Better Way, that would have repealed the protections and replaced them with a different system.

Rather than ObamaCare’s protections, the Better Way plan would have protected people with pre-existing conditions only if they maintained “continuous coverage,” meaning they had no gaps in coverage. Unlike under ObamaCare, the plan would not extend the protections to people who were uninsured and trying to enroll in coverage. For those people, Republicans proposed subsidizing coverage through separate high-risk pools.

During a town hall at Georgetown University last year, Speaker Paul Ryan(R-Wis.) called for repealing ObamaCare’s community rating protection and allowing insurers to return to the days of “underwriting,” when they could charge people with pre-existing conditions more. Instead, sick people could get coverage subsidized through high-risk pools, he said.

“Open up underwriting, have more insurance companies, have more competition, and just pay for the person with the pre-existing condition to make sure that they can get affordable coverage when that moment happens and make it much more competitive for everybody else,” Ryan said then. “I think it’s a smarter way to do it economically and it gives people more freedom, more choices.”

Now, though, many House Republicans are defending the ObamaCare protections.

Block grant funding of public health insurance: the Canadian example

Block grant funding of public health insurance: the Canadian example

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Speaker Paul Ryan wants to reform Medicaid by “block granting” the program, that is,

by capping federal funding and turning control of the program over to states. The aim of such reforms is to reduce federal funding over the long term, while preserving a safety net for needy, low-income Americans. An additional valuable aim of this effort has been to advance federalism by reducing the federal government’s role and giving states and governors more freedom and flexibility in managing their Medicaid programs and helping people in their states.

What are the likely consequences of block granting? Benjamin Sommers and David Naylor write in JAMA about how Canada’s joint federal/provincial funding of health care provides lessons about the likely consequences of block granting.

Canada is a single payer health care system. However, there isn’t a Canadian single payer. Rather, there is a single payer for each province: I am covered by the Ontario Health Insurance Plan (OHIP). These plans are primarily funded by provincial taxes. However, provinces also receive a health transfer from the Canadian federal government, i. e., a block grant. The provincial health insurance plans are run by provincial health ministers, not the federal minister in Ottawa.

So, does provincial autonomy facilitate experimentation and tailoring by the provinces? Sommers and Naylor think not.

there is little evidence that the alleged advantages of block grants have materialized in Canada. Advocates argue that with greater flexibility and proper incentives, states can reduce costs by improving the efficiency of care. In Canada, however, the provinces’ primary means of coping with budget pressures under block grants has been to reduce funding to hospitals and bargain harder with provincial medical associations. Ironically, then, if this scenario plays out in the United States, it would exacerbate one of the chief Republican criticisms of Medicaid — that it pays clinicians such low rates that they have reduced incentives to care for low-income patients.

Indeed, physician refusal to take Medicaid patients is one of Speaker Ryan’s central criticisms of Medicaid.

What about the effects of a block grant system on federal funding of health care?

Once block funding was initiated in 1977, health care funding became a line item in the federal budget that could be arbitrarily cut or capped for fiscal or political reasons, as opposed to a level of spending pegged to the needs and health care use of the population. Importantly, these cuts occurred under both conservative and liberal federal governments.

When the Canadian health transfer began, the federal government paid 50% of provincial costs. However, the transfer has steadily declined, until it is now about 20%. Sommers and Naylor predict that US federal block grants would also decline, and this is clearly one of Speaker Ryan’s goals.

However, Canadian health care spending per capita has not declined.

As the cost of providing care has risen, but the federal health transfer has stayed fixed or declined, the provinces have taxed more and the federal government has taxed less. The provincial governments hate this, because they would rather have the federal government make the unpopular choice to raise taxes. But it’s not clear whether block granting has made a big difference in the health care received by Canadians.

American states could similarly increase taxes in response to a declining federal Medicaid block grant, but would they? The key difference between Canadian public health insurance and Medicaid is that the former is universal, while the latter is means-tested. Ontarians prefer lower taxes, but if Ontario decreases funding for OHIP, every Ontarian will experience longer waits for care. But American states can cut Medicaid — and reduce taxes — without affecting the health care of better off and able-bodied citizens.

The affluent and able-bodied are also the citizens most likely to vote. American states determine their own voting procedures. Block granting gives states an incentive to manage voting so as to reduce the participation of the marginalized communities who are most in need of public health insurance. Block granting is likely to undermine the health care for the poor and disabled, and it could reinforce the post-Shelby County v. Holder efforts to restrict voting.

 

Invisible Risk Sharing Program

Too little, too late

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In their latest amendment to the American Health Care Act, House Republicans have created something called an “invisible risk sharing program.” The amendment is befuddling. The invisible program is a minor tweak that won’t improve the AHCA’s dismal coverage numbers. It’s not even really a program. If there’s any prospect at all of salvaging Republican-style repeal and replace, this newest amendment isn’t it.

The statutory text is spare. It appropriates $15 billion over nine years—or $1.67 billion each year—and tells the Secretary of Health and Human Services to use the money “to provide payments to health insurers with respect to claims for eligible individuals for the purpose of lowering premiums for health insurance coverage offered in the individual market.” The Secretary can supplement that funding with any money from the AHCA’s high-risk pools that states don’t find a way to use.

Beyond that, however, the statute tells us next to nothing about how the program is supposed to work. Hilariously, a section of the statute titled “Details of Program” contains no details. It says, for example, that the program should include “[a] definition for eligible individuals,” but leaves the defining up to HHS. So too with “[t]he identification of health conditions” that, if an eligible person has them, would qualify her insurer for extra payments.

Oh, and the program is supposed to be in place in time for the 2018 plan year.

Read generously, this newest amendment tells HHS to create a kind of reinsurance program for insurers who enroll high-cost individuals. The statute doesn’t use the word “reinsurance,” maybe because Republicans have spent years railing against the risk corridor and reinsurance programs as insurer bailouts. But if those were bailouts, then this is too.

Judging from the title, the program is supposed to look something like the proposal pioneered by Maine and described in this Health Affairs post. But Republicans are delusional to think that the Secretary can establish and implement a complex reinsurance-style program in time for the 2018 plan year. Insurers that want to participate on the exchanges have to submit bids to HHS by June 21. Even if the AHCA passed tomorrow—which it won’t—there’s no chance that Secretary Price could ramp it up in time.

Nor does the amendment explain how the new program is supposed to interact with the ACA’s risk adjustment program, which the AHCA leaves in place. The point of risk adjustment is to equalize risk across insurers: those with healthier-than-average enrollees have to pay into a central kitty, and those with sicker-than-average enrollees get some of that money. But if insurers get “invisible” risk sharing money for high-cost individuals, should they get less in risk adjustment money? The amendment doesn’t say.

In any event, the money is too insubstantial to make much of a difference. Sure, $1.67 billion per year sounds like a lot of money. But $1.67 billion is chump change compared to the subsidy reductions that are contemplated under the AHCA. It’s like using a band-aid to treat a gunshot wound.

 

Repeal push complicates state efforts to get ObamaCare waivers

Repeal push complicates state efforts to get ObamaCare waivers

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A number of states are readying blueprints for substantial changes under an ObamaCare waiver program, but a renewed push to repeal the law is complicating their plans.

The Affordable Care Act’s 1332 State Innovation Waiver lets states skip some of the law’s regulations if their healthcare plan covers a comparable number of people without increasing the federal deficit. States can apply for the waivers starting this year.

But a revived attempt to repeal the health law is throwing a wrench in those plans, since states don’t know what a new bill will entail. While House Republicans moved forward an amendment in committee to their larger repeal bill on Thursday, the party is far from reaching a consensus.

“The way we are tackling those great uncertainties is that we have to continue to move forward with plans to make the market more stable and proceed along a path that works within the current regulatory framework,” said Oklahoma Health Care Authority Chief Strategy Officer Buffy Heater. “Now we have to of course be mindful of any other proposals that may come up, or any movements that may be made at that time, and be flexible and adapt to whatever changes those might bring.”

Oklahoma is preparing to file a plan with the Centers for Medicare and Medicaid Services later this summer that would implement sweeping changes to the state’s individual insurance market.

If approved, the waiver would establish what Duke University health policy researcher David Anderson calls a “backdoor Medicaid expansion” by shifting subsidies from people between 100 percent to 400 percent of the federal poverty level to those between 0 percent to 300 percent.

The waiver would also allow insurers to charge older members more, restructure subsidies based on age and income, eliminate tiers in favor of two broader categories and require insurers to establish a minimum amount of value-based agreements. Officials also want to regulate outcomes in a number of areas, including mental health, diabetes and obesity.

The stakes are high. Blue Cross Blue Shield of Oklahoma is the only carrier left on the state exchanges, and the state suffers from low enrollment rates. Heater said CMS has promised the state an expedited waiver review but no assurances that things won’t change.

 

GOP leaders under pressure to bring House back to vote on Trumpcare

https://www.axios.com/gop-leaders-under-pressure-to-bring-house-back-to-vote-on-trumpcare-2347805897.html

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House GOP leaders are checking to see whether the latest Trumpcare revisions have changed enough votes to bring it closer to passage — especially with the conservative Freedom Caucus. If there’s enough movement, they could bring the House back from recess as early as next week, according to two leadership sources.

Don’t get too excited: It’s all part of a frantic effort to show movement on the health care bill to satisfy President Trump, who doesn’t want the House to leave for a two-week recess without some action to satisfy Republicans’ Obamacare repeal promises. But even Republicans close to the leadership don’t think the latest changes are enough to make this the final bill — and there’s no sign yet that the GOP has picked up enough Freedom Caucus votes.

The problem: All they’ve settled on is the addition of a $15 billion risk-sharing fund to help health insurers with high-cost patients. Not only is it similar to an Obamacare reinsurance program — with less money — it doesn’t do anything to solve the basic dispute with the Freedom Caucus. It wants to let states get rid of the Obamacare rules requiring insurers to cover sick people, and banning them from charging higher premiums for those patients. The rest of the GOP doesn’t want to touch that.

The bottom line: Leadership sources say it’s all up to the Freedom Caucus now.

Update: From AshLee Strong, spokeswoman for House Speaker Paul Ryan: “Member discussions will continue and should a path toward 216 votes emerge, the speaker wouldn’t hesitate to bring members back to fulfill our promise to repeal and replace Obamacare.”

 

Estimates: Average ACA Marketplace Premiums for Silver Plans Would Need to Increase by 19% to Compensate for Lack of Funding for Cost-Sharing Subsidies

Estimates: Average ACA Marketplace Premiums for Silver Plans Would Need to Increase by 19% to Compensate for Lack of Funding for Cost-Sharing Subsidies

A new Kaiser Family Foundation analysis finds that the average premium for a benchmark silver plan in Affordable Care Act (ACA) marketplaces would need to increase by an estimated 19 percent for insurers to compensate for lost funding if they don’t receive federal payment for ACA cost-sharing subsidies.

Established by the health law to reimburse insurers for the cost of reducing out-of-pocket costs for lower-income people buying marketplace plans (with incomes from 100% to 250% of the poverty level), the subsidies have been challenged in a lawsuit from the U.S. House. With a legal appeal pending, the federal government and Congress are in a position to choose whether to continue reimbursing insurers for their cost.

Among 12.2 million people who selected a 2017 ACA marketplace plan, about 58 percent, or 7.1 million, are receiving cost-sharing reductions. An earlier Foundation analysis of 2017 plans found the subsidies lower combined medical and prescription drug deductibles by as much as $3,354 and reduce annual out-of-pocket maximums by up to $5,587.

The Foundation’s new analysis examines the amount insurers would need to increase premiums to make up for the lack of funding, if federal payments cease for the cost-sharing reduction program.

 

GOP Has No Choice But To Keep Pushing Health Care Rock Up The Hill

http://khn.org/news/gop-has-no-choice-but-to-keep-pushing-health-care-rock-up-the-hill/

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This week’s effort to resurrect the GOP bill to overhaul the Affordable Care Act has apparently met the same end as the first try in March — not even a vote on the floor of the House. Apparently the roadblock was the same, too. Efforts to gain votes from holdout conservatives repelled moderate Republicans in the House, while efforts to placate moderates kept conservatives from signing on.

So what was the purpose of the new effort, which was led mostly from the White House?

Republican health analysts said party officials had little choice but to keep trying to reach consensus — or at least enough consensus to pass a bill out of the House.

GOP House members, particularly those from conservative areas, “are going to go home and get hammered for not repealing Obamacare,” said Thomas Scully, a health policy official in both Bush administrations.

The latest Kaiser Family Foundation monthly tracking pollsuggests that might well be the case. Although three-quarters of the population wants President Donald Trump and his administration to make the health law work, 54 percent of Republicans said it was “a bad thing” that the House GOP bill failed to pass in March, and 58 percent of Republicans said the bill “did not go far enough to end Obamacare.” (Kaiser Health News is an editorially independent project of the foundation.)

Chris Jacobs, a longtime GOP congressional staffer, said there are two imperatives still pushing for some kind of deal. “First, a seven-year commitment by the Republican Party” to repeal and replace the health law, “and second, the administration very clearly wants a win” on some sort of major policy initiative.

But apparently the ideas put forward by the White House to gain more conservative votes without losing moderate ones did not work as the administration hoped.

Conservatives were reportedly pleased early in the week when it appeared states would be allowed to opt out of most of the ACA’s insurance regulations — including rules on what benefits must be covered and whether insurers can charge sicker people higher premiums or deny them coverage.

But moderates complained that would violate promises that the GOP would keep intact protections for people with preexisting health conditions. And the proposal was apparently scaled back.

What remained “was a substantial narrowing in an unproductive way for the proposal,” Michael Needham of the conservative group Heritage Action told reporters on a conference call. Needham called the new version “a nonstarter” for conservatives.

On Thursday, Republicans announced agreement on an amendment to the health bill that would provide $15 billion to help compensate insurers for very high-cost patients.

But at a hastily called meeting of the House Rules Committee, even Chairman Pete Sessions (R-Texas) conceded that the amendment, at least for now, mostly provides a way for members to say they are making progress as they head home to face their constituents.

“What we’re trying to do is lock in ideas so we [Republicans] have an opportunity to go home and amplify,” he said.

Now Congress is poised to leave Washington for a two-week spring recess, from Monday through April 21, without their promised health bill. And what happens when they come back is unclear.

“They put themselves in this box canyon and have no way out of it,” said political scientist Norman Ornstein of the American Enterprise Institute. “I just don’t see a strategy here.”

 

Trump’s New Plan to Penalize the Sick

https://www.americanprogress.org/issues/healthcare/news/2017/04/06/430156/trumps-new-plan-penalize-sick/

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Republicans need to stop making a terrible health care bill even worse. A little over a week ago, President Donald Trump declared that the White House would be moving on from its efforts to repeal the Affordable Care Act, or ACA. However, in an abrupt about-face, the administration is now reportedly considering a new proposal in an attempt to reinvigorate talks: allowing insurers to drastically raise prices on people with pre-existing conditions, even to the point of preventing them from obtaining insurance at all.

First Republicans had a proposal that would lead to skyrocketing uninsurance and out-of-pocket costs while increasing premiums. Then they argued for driving up coverage prices for services like maternity care and substance abuse treatment while simultaneously weakening protections for employer-provided insurance. Now they’re threatening to eliminate protections for the up to 133 million individuals who have pre-existing conditions.

Selling Health Insurance Across State Lines Is Unlikely to Lower Costs or Improve Choice

http://www.commonwealthfund.org/publications/blog/2017/apr/selling-health-insurance-across-state-lines?omnicid=EALERT1190217&mid=henrykotula@yahoo.com

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In the wake of the failure of the legislative effort to repeal and replace the Affordable Care Act (ACA), the fate of another of the president’s health care priorities is unclear. In his first congressional address, President Trump articulated five principles for health care reform. His fifth and last called for giving “Americans the freedom to purchase health insurance across state lines,” a reform that, in his words, would create “a truly competitive national marketplace that will bring cost way down and provide far better care.” This concept was not in the House reconciliation bill (the “American Health Care Act” or AHCA) to repeal and replace key provisions of the ACA, but President Trump may be able to use his regulatory authority to promote the cross-border sales of health insurance.

The president has the authority to act on his own thanks in part to the ACA. That law includes a provision encouraging “health care choice compacts,” whereby an insurer could establish itself in one state and sell health insurance to consumers in multiple other states without having to follow those states’ laws and regulations. However, under President Obama, the U.S. Department of Health and Human Services (HHS) never published regulations enabling these cross-state sales.

While the ACA provision encourages states to enter into cross-state regulatory agreements in order to facilitate interstate sales, under Trump’s campaign and several congressional proposals, the federal government would effectively override states’ authority to regulate their markets. In the absence of legislative action, there is nothing preventing HHS Secretary Tom Price from issuing the required regulations and working with states to develop standards for interstate sales. In fact, several states already allow cross-state sales.

 

What’s Next for the ACA and the People It Covers?

http://www.commonwealthfund.org/publications/blog/2017/mar/whats-next-for-the-aca-and-the-people-it-covers?omnicid=EALERT1187962&mid=henrykotula@yahoo.com

If Republicans are unable to revive last week’s failed effort to repeal and replace the Affordable Care Act (ACA), the nation will need to turn back to ensuring the long-term success of the law. Decisions made by the Trump administration and Congress as well as state policymakers over the next few years will help determine how many people the ACA covers, how affordable the coverage is, and its cost to federal and state governments. Such decisions include whether and how the administration will use its executive authority to sustain, or undermine, the law’s key provisions, and how Congress might ensure the stability of individual health insurance markets nationwide.

Policymakers will need to keep in mind what’s at stake: the health and well-being of real people with real health care problems. The ACA has enabled more than 30 million Americans to get health insurance or to purchase more valuable coverage. Provisions of the law aimed at improving the delivery system have reduced the number of people treated in hospitals who have to be readmitted for more care, and have contributed to a slowdown in the rate of growth in health care costs. As elected and executive branch officials contemplate their choices, they should consider these human benefits—and the consequences of jeopardizing them.