Five Republican senators aim to delay ACA repeal

http://www.fiercehealthcare.com/payer/five-republican-senators-aim-to-delay-aca-repeal?utm_medium=nl&utm_source=internal&mkt_tok=eyJpIjoiWmpCaVl6YzNZVGMzWW1VMSIsInQiOiJFOWcxQXlNRFltbXIzc2FocWNwREJpRnp6dEpLbmZORTVIb29WaTRtQ2lrYzVwQ1hjOW4rS1RMUDlNOEE1RVRJdEJoMjJYeEpNWUFjbnBiRUQ0WGhoSGpkUDQyWkQxZE1UQ3NBbFU1bjVwVm5ITjBTVUxRbmNWQ3JcLytnMlM0bnAifQ%3D%3D

The Senate side of the United States Capitol in Washington, D.C.

With Republican leadership charging ahead despite growing concerns about a hasty repeal of the Affordable Care Act, a group of GOP senators has introduced a measure intended to draw out the repeal process.

The amendment, introduced by Republican Sens. Bob Corker, Rob Portman, Susan Collins, Bill Cassidy and Lisa Murkowski, would extend the deadline for congressional committees to write an ACA repeal bill from Jan. 27 to March 3.

The Senate is expected to vote this week on a resolution that would set the stage for repealing key provisions of the law through budget reconciliation.

President-elect Donald Trump hasn’t officially indicated a position on a repeal timeline, but top Trump aide Reince Priebus and Kentucky Sen. Rand Paul have both indicated that he would support a simultaneous repeal and replacement, FierceHealthPayer has reported.

ACA repeal: Why healthcare lobbies are unusually quiet as Congress acts

http://www.fiercehealthcare.com/healthcare/aca-repeal-why-healthcare-lobbies-are-unusually-quiet-as-congress-acts?utm_medium=nl&utm_source=internal&mkt_tok=eyJpIjoiWmpCaVl6YzNZVGMzWW1VMSIsInQiOiJFOWcxQXlNRFltbXIzc2FocWNwREJpRnp6dEpLbmZORTVIb29WaTRtQ2lrYzVwQ1hjOW4rS1RMUDlNOEE1RVRJdEJoMjJYeEpNWUFjbnBiRUQ0WGhoSGpkUDQyWkQxZE1UQ3NBbFU1bjVwVm5ITjBTVUxRbmNWQ3JcLytnMlM0bnAifQ%3D%3D

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A fast-track repeal and replacement of the Affordable Care Act will lead to widespread chaos and millions of Americans losing health insurance coverage. But many healthcare executives and lobbyists haven’t put up much of a fuss for fear of getting on the “wrong side” of the new White House administration.

Republicans are acting quickly to overturn President Barack Obama’s landmark legislation, but The New York Times reported that the strongest message lobbyists have sent to lawmakers was a demand for the repeal of an annual fee that health insurance companies must pay to expand coverage under the law.

While not all healthcare groups are keeping quiet—the American Medical Association, for instance, has urged lawmakers to be cautious with their plans to repeal—industry groups that helped create the Affordable Care Act in 2010 are keeping a low profile, according to the publication.

Many healthcare execs “don’t want to get on the wrong side of the new administration or the Republican majority in Congress,” Kenneth E. Raske,  president of the Greater New York Hospital Association, told the NYT.

So instead of trying to stop the repeal, many lobbyists aim to help shape the replacement of it.

Part of the reason for the muted response, the publication noted, is that many of these same people were taken by surprise by the election of Donald Trump because they expected Hillary Clinton to win.

One person who is in a particularly awkward position, the NYT writes, is Marilyn B. Tavenner, chief executive of America’s Health Insurance Plans, the leading lobby for insurers. She worked for the Obama administration for years and led the work on the Affordable Care Act.

She has urged that Congress maintain subsidies for low- and moderate-income individuals through at least 2019 and eliminate the tax on insurers.

Repeal-and-Delay Would Make Budget Neutrality for ACA Replacement Difficult

http://www.commonwealthfund.org/publications/blog/2017/jan/repeal-and-delay-budget-neutrality-aca-replacement?omnicid=EALERT1152052&mid=henrykotula@yahoo.com

As Congress considers options to repeal and replace the Affordable Care Act (ACA), it will need to confront how the federal budget scoring process can affect the fate of legislation. The Congressional Budget Office (CBO) is required to produce a “score,” or budget estimate, for most bills approved by a full committee in both the House of Representatives and the Senate. Each score represents CBO’s best estimate of the 10-year impact of legislation on the federal deficit. Bills scored as deficit-increasing may be difficult to pass given certain statutory and procedural rules intended to prevent new legislation from increasing the federal deficit.

Under the plans currently being discussed, repeal of the ACA’s coverage expansions may be delayed for two to three years to avoid immediately ending coverage for the 20 million people who became newly insured through the ACA.1 Another rationale for the potential delay is to allow Congress time to coalesce around a single replacement policy. Yet the repeal-and-delay approach could also set up a budgetary cliff by taking credit for the savings and leaving the costs of any replacement for future legislation.

CBO evaluates legislation relative to a baseline that reflects existing law. Under a repeal-and-delay approach, Congress would partially repeal the ACA in 2017 using budget reconciliation, a process that allows expedited consideration of legislation that affects the federal deficit. To do so, the House and the Senate would need to pass a budget resolution requiring Congress to reconcile the budget to achieve specific changes to revenues or spending. (So far, the Senate has passed such a resolution.) Congress could then repeal provisions of the ACA that directly affect the federal budget, including federal funding for Medicaid expansion and marketplace tax credits, with a simple majority of votes, avoiding the potential of a filibuster in the Senate.

With this approach, lawmakers would be able to act quickly and decisively on a key promise made by president-elect Donald Trump, namely to repeal the ACA within the first 100 days after taking office. But disagreement among lawmakers about appropriate replacements for the ACA could cause disruption for insurers and health care providers, who would face uncertain regulatory and marketplace environments.

Moreover, the repeal-and-delay approach could make it difficult for any replacement legislation to be budget neutral. In a score of a previous partial repeal bill, H.R. 3762, CBO projected that repealing the coverage provisions in the ACA would reduce federal spending by $1.4 trillion between 2016 and 2025. Once repealed, the savings associated with eliminating the ACA’s coverage expansions would be part of current law and hence the baseline budget. This means that a future replacement bill could be scored as deficit-increasing, even if it cost less than $1.4 trillion.

S&P issues stable outlook for nonprofit healthcare despite looming ACA repeal

http://www.beckershospitalreview.com/finance/s-p-issues-stable-outlook-for-nonprofit-healthcare-despite-looming-aca-repeal.html

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S&P Global Ratings‘ outlook on the nonprofit healthcare sector is stable in 2017, despite the sector facing a likely repeal of the ACA.

Although S&P’s ratings and financial medians support its outlook on the sector, the rating agency may change its outlook in the near future.

“…we see a growing potential for credit quality deterioration based on the latest results from some providers, and the possibility the outlook could turn negative after the new administration and Congress are sworn in, given their intention to drastically alter the ACA and many long-term legislative tenets of the overall healthcare delivery system,” said Kevin Holloran, an S&P Global Ratings credit analyst.

Even without any major legislative changes, many hospitals are facing renewed expense, revenue and volume pressures, as the initial positive effects of Medicaid expansion have ended. S&P said there has recently been an increase in the number of providers with weaker financial and operating performance.

“We believe the sector peaked in 2016 from a financial and operating metric perspective, although change is evolving slowly and is based on existing legislative healthcare framework,” said S&P.

The rating agency emphasized that 2017 is not all doom and gloom for the nonprofit healthcare sector.

“Continued implementation of fundamental operational improvement initiatives and strategies…should continue to provide financial flexibility under any type of payment system,” said S&P.

Two other major rating agencies, Moody’s Investors Service and Fitch Ratings, have also issued stable outlooks for the nonprofit healthcare sector in 2017.

Antitrust trial over $37B Aetna-Humana merger nearing an end

http://www.healthcaredive.com/news/antitrust-trial-over-37b-aetna-humana-merger-nearing-an-end/433206/

A decision on the $37 billion merger between Aetna and Humana will be made soon. The payers and the federal government have been an engaged in a legal standoff since the U.S. Department of Justice and several states filed an antitrust lawsuit in July 2016 to block the merger, citing reduced competition, hindered innovation, and increased prices to consumers. The federal government also alleges the deal would give Aetna too much of a stake in the Medicare Advantage market.

Representatives for both Aetna and the federal government have been exchanging barbs for the past several months. The government accused Aetna of scaling back its participation in ACA marketplaces as a result of the lawsuit. Aetna claimed that these accusations were unfounded and said the deal would be a pro-competitive move that would benefit millions.

Health insurance giant Anthem has also proposed a $54 billion merger with Cigna. If both mergers occur, it would combine four of the five largest insurers in the country.

There is no timeline set for a decision in the case. Yet Judge Bates said he would issue his decision in a “timely manner,” according to Bloomberg.

Obamacare repeal without replace would cost $140 billion in funding, kill more than 2 million jobs

http://www.healthcarefinancenews.com/news/advocates-lawmakers-laud-policy-changes-curb-death-fees-imposed-my-medi-cal

President-elect Donald Trump and Congressional Republicans have made clear their intentions to repeal the Affordable Care Act, but a new analysis from the Commonwealth Fund finds that repeal, without a replacement, would result in a $140 billion loss in federal funding for healthcare in 2019, leading to the loss of 2.6 million jobs, most of them in the private sector.

Without replacement policies in place, there would be a cumulative $1.5 trillion loss in gross state products and a $2.6 million reduction in business output from 2019 to 2023, the analysis shows. The state, and healthcare providers, would be particularly hard-hit.

Congress and the new administration would likely begin by targeting the ACA’s insurance premium tax credits and the expansion of Medicaid eligibility. Commonwealth’s research shows that the loss of those two provisions would double the number of the uninsured, cause higher uncompensated care costs for providers and hike taxes for lower-income Americans.

Healthcare will comprise almost one-fifth of the nation’s economy by 2019, so major changes to the healthcare landscape would reverberate across other parts of the economy.

To track this, Commonwealth analyzed funding flows from the federal government to states, consumers and businesses. Federal tax credits first flow to health insurers. Most of that money, aside from overhead, goes to hospitals, clinics, pharmacies and other providers. Those are the direct effects of federal funding.

Most of the revenue earned by providers is used to hire staff and pay for goods and services, like clinic space or medical equipment. In turn, those vendors pay their employees, and additional goods and services. Those are the indirect effects.

Lastly, the workers use their incomes to pay for food, mortgages, rent, transportation, etc., which provides income to other business and industries. Those are the induced effects. When federal funds are cut, it triggers losses in employment and economic activity.

How Will The Planned Repeal Of Obamacare Affect Californians?

How Will The Planned Repeal Of Obamacare Affect Californians?

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As federal lawmakers debate the fate of Obamacare this month, health coverage for millions of Californians hangs in the balance.

Covered California, the state health insurance exchange, and the expansion of Medi-Cal, the state’s Medicaid program for low-income residents, are products of the Affordable Care Act. Both could be at risk if the GOP-led Congress and President-elect Donald Trump gut key pieces of the health law.

Earlier this week, California Healthline Senior Correspondent Emily Bazar discussed the future of Obamacare coverage in California on Valley Public Radio’s Valley Editionprogram.

So far, answers remain elusive.

 

7 things you need to know about the future of Obamacare

http://www.latimes.com/politics/la-na-pol-obamacare-explainer-20170105-story.html?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=40201659&_hsenc=p2ANqtz-9Uem4u-88vm0uSaKSUtpimygRZcnoFsTKnFjgSMV_-DO2M1uADZ2botlQqf2or2w1gLrjuw6jxaztyZOpFjfhhh2nvKQ&_hsmi=40201659

You’ve seen the headlines and you’ve heard the slogans: Obamacare is on the chopping block and President-elect Donald Trump is going to replace it with “something terrific.”

But what are the new president and Congress really going to do? How much of the current law will really go away? And what could “Trumpcare” look like?

In case it’s been a while since you read about the Affordable Care Act and the GOP replacement plans, here’s a refresher on the biggest Obamacare issues.

Obamacare Repeal Could Push Rural Hospitals to the Brink

http://www.thefiscaltimes.com/2017/01/05/Obamacare-Repeal-Could-Push-Rural-Hospitals-Brink?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=40201659&_hsenc=p2ANqtz-8KqKXcgqf_db4edAlc57mjW0ZBhwKkpUjZiSlsuEm5fUpTtlY79dLUg_WR5hqtaQqIpmHbr1QCs8iiVNz7EsE_1FhovQ&_hsmi=40201659

Many of the rural hospitals and health centers serving 62 million Americans have operated on a shoestring for years.

Since January 2010, 80 rural hospitals and health care facilities that provided treatment to large numbers of elderly and low-income families were forced to close for financial reasons. More than 670 of the remaining 2,078 facilities are vulnerable or “at risk” of closure, according to hospital industry experts.

For many of those hospitals, the Affordable Care Act (ACA) was a lifeline, providing millions of their patients with the financial wherewithal to obtain health care treatment and prescription drugs without having to turn to emergency rooms for assistance.

But as the new Republican Congress and GOP President-elect Donald Trump press to repeal Obamacare in the coming months with no suitable replacement in hand, rural hospital officials say they are facing a “triple whammy” of lost financial benefits that could force many of the remaining rural hospitals out of business in the coming decade.

“We’re in the midst of a rural hospital closure crisis right now, and that is with the ACA currently in place,” Alan Morgan, the CEO of the National Rural Health Association, said in an interview Thursday. “Looking at our projections for where we’re headed, at the current rate we could see a third of all rural hospitals closed within the next decade.”

The advent of Obamacare enabled 1.7 million rural Americans to purchase subsidized private coverage on government operated exchanges last year, an 11 percent increase from 2015, according to the U.S. Department of Health and Human Services. Millions more obtained expanded Medicaid coverage for low-income adults in rural states that opted into the program under Obamacare.

Only 20 Percent Of Americans Support Health Law Repeal Without Replacement Plan

http://khn.org/news/only-20-of-americans-support-health-law-repeal-without-replacement-plan/

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The Republican strategy of repealing the Affordable Health Care Act before devising a replacement plan has the support of only one in five Americans, a poll released Friday finds.

The Kaiser Family Foundation survey also disclosed that shrinking the federal government’s involvement and spending in health care — the long-sought goal of House Speaker Paul Ryan and other Republican lawmakers — is less important to most Americans than is ensuring medical care is affordable and available. (Kaiser Health News is an editorially independent project of the foundation.)

Views split not only on partisan lines but also within the Republican Party, where nearly four in 10 think that the government should guarantee health care is available to the elderly and to low-income people, even if it means more federal involvement.

Despite the rout of Democrats in the election, which gave the GOP control of both the White House and Congress, the public’s view on the Affordable Care Act remains as divided as it has been since it was passed by President Barack Obama and congressional Democrats in 2010.  Currently, 47 percent of the public wants to keep the law, which upended the way insurers do business and expanded coverage to 20 million Americans.