Where is the Democratic ACA replacement bill?

Where is the Democratic ACA replacement bill?

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David Leonhardt says that the Republicans are “unable to agree on a [health care] policy” and “don’t have the votes to pass [an ACA replacement] plan.” OK, but what I want to know is, what is the Democratic alternative?

On the face of things, this is a strange question, because the Democrats cannot pass a bill in this Congress. Nevertheless, the Democrats should think about what they want to see in a replacement. There is a chance that the Republicans will fail to pass a bill that replaces the ACA without harming lots of Americans, including Republican voters. Here’s why:

  • As Nicholas points out, the Republican’s draft bill that recently leaked showed that they are not close to coming up with a coherent plan. Their current draft could lead to higher costs for insurance, or loss of insurance, for many people currently covered under the ACA. This isn’t playing well.
  • The far-right House Freedom Caucus has announced that it will oppose any bill that does not fully repeal the ACA. If all 32 HFC members took this view, the remaining House Republicans would not hold a majority. The leader of the larger but less conservative House Republican Study Group has also said that he “couldn’t support the party’s existing Obamacare replacement strategy.”
  • There are only 52 Republicans in the Senate and a few of them are moderates on the ACA. So it’s not clear that a bill acceptable to the radical right in the House can pass the Senate.
  • Let’s put this gently: President Trump lacks well-formed views about health care policy. He may not be willing or even able to coordinate the Republican factions.

We don’t know what will happen if no bill is passed or if the ACA is repealed without a replacement. But the Women’s March, the flash protests in response to the Travel Ban, and the uptick in support for the ACA suggest that the Republicans will face well-mobilized opposition if they screw up. If so, the GOP could be looking at the 2018 election with a deeply unpopular president and chaos in the health care system for less affluent Americans. If there is a prospect of losing their majorities, the Congressional Republican leadership might be willing to work with Democrats to pass a bipartisan ACA replacement.

As I described here, there is a left argument that Democrats should refuse any compromise and let the Republicans reap the consequences of their policies. A centrist counter-argument is that a lasting change in health care institutions requires bipartisan legislation, and the best time to get a deal is when Republicans are desperate.

Do I think that it’s likely that the Republicans will be willing to negotiate with Democrats about an ACA replacement? No. The lesson of 2016, however, is that anything is possible. So if the opportunity to negotiate arrives, the Democrats will need to have thought through what compromises they would be willing to accept.

In speech to Congress, Trump backs GOP leaders’ healthcare tax credits idea

http://www.fiercehealthcare.com/aca/speech-to-congress-trump-backs-gop-leaders-healthcare-tax-credits-idea?mkt_tok=eyJpIjoiWkRjeU1tTTFPVEUyTjJaaCIsInQiOiJBNGU4aWlDQkpcL3l6eURqQUMyR2w3aVFtNStxVzBraUpQcTVOamQ4SVNEVUNDeXFQQ1RDWG5qdmptMjI4VWpiVTdHUDltN0ZTMG5ObWlHOWl0cXRmVEpjQ0h2bFU1NXJKM2YzaHBrcnc2VlVJVkoyTHJrQjBndGI5b3BGWmdJV1oifQ%3D%3D&mrkid=959610&utm_medium=nl&utm_source=internal

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In his address to Congress Tuesday night, President Donald Trump called for an end to the Affordable Care Act while voicing support for a key tenet of GOP leaders’ replacement plan that has met resistance from some within the party.

“Obamacare is collapsing, and we must act decisively to protect all Americans,” Trump said. “Action is not a choice—it is a necessity.”

He outlined five principles that he said should guide Congress as it works to create a better healthcare system:

  • Ensure that Americans with preexisting conditions have access to coverage, and that there is a stable transition for those currently enrolled in plans available on the ACA exchanges
  • Help Americans purchase their own coverage, through the use of tax credits and expanded health savings accounts. In a dig at the ACA’s essential health benefits requirements, Trump added that “it must be the plan they want, not the plan forced on them by the government”
  • Give governors the resources and flexibility they need with Medicaid “to make sure no one is left out.”
  • Give consumers the freedom to purchase health insurance across state lines, “creating a truly competitive national marketplace that will bring cost way down and provide far better care”

Trump’s support of tax credits to help people afford coverage is in line with a recently leaked draft bill from the House, which would give consumers age-based tax credits to purchase individual market plans. That provision received pushback from two prominent conservative House members, who characterized the tax credits as a “new entitlement program.”

Beshear’s response cites Kentucky’s embrace of ACA

In the Democratic response to Trump’s speech Tuesday, former Kentucky Gov. Steve Beshear pushed back against the GOP’s plans to scrap the ACA, saying his state reaped the benefits of embracing the law despite its conservative leanings.

Under Beshear’s administration, Kentucky expanded Medicaid eligibility and set up its own state exchange, Kynect. Thanks to those efforts, Beshear said in his speech, half a million Kentucky residents gained coverage—people who are “not aliens from some distant planet,” but “our friends and neighbors.”

While he acknowledged the ACA does need “some repairs,” Beshear said Trump and his fellow Republicans “seem determined to rip affordable health insurance away from millions of Americans who most need it.”

In Beshear’s own state, his GOP successor Gov. Matt Bevin has moved to shut down Kynect and roll back Medicaid expansion. In that effort, he’s had help from Trump’s pick for to lead the Centers for Medicare & Medicaid Services, Seema Verma.

The leaked Republican replacement

The leaked Republican replacement

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The text of a draft bill to repeal and replace Obamacare leaked on Friday. Because the draft hews to principles that Republicans have outlined before, its basic contours aren’t that surprising. As I explained to Greg Sargent at the Washington Post:

The emerging GOP replacement would repeal tax hikes on the very rich and, instead, impose a tax [on employer coverage] that would hit many more people, including lots of public employees like schoolteachers and police officers. At the same time, it would slash Medicaid for the poorest Americans, as well as subsidies that the near-poor rely on to buy private coverage.

Drilling down to details, I had some observations. Take these with a big grain of salt: the leaked draft is dated February 10, so we don’t know how closely it resembles what’s currently under discussion in the House.

Five takeaways from the leaked Republican bill to repeal Obamacare

http://www.pbs.org/newshour/rundown/5-takeaways-leaked-republican-bill-repeal-obamacare/

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A formal draft of the House Republican plan to repeal and replace the Affordable Care Act leaked out on Friday.

The final version is likely to be different — how much different, it’s hard to say. The draft obtained by Politico is dated two weeks ago, and rumors have been swirling here that Republicans received an unfavorable analysis from the Congressional Budget Office, the official scorekeepers on the cost and coverage implications of legislation.

But this is nonetheless an important milestone — real legislative text, prepared with an eye toward the complex parliamentary procedures needed to pass ACA repeal with only Republican votes, and presumably with the endorsement of House leadership.

Much attention will be paid to the proposed tax credits offered for people to buy health insurance and the changes to the tax treatment of employer-based insurance. Here are five provisions with big implications for health and medicine.

 

Medicaid’s Role: What’s at Stake Under a Block Grant or Per Capita Cap?

Medicaid’s Role: What’s at Stake Under a Block Grant or Per Capita Cap?

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A new video slideshow from the Kaiser Family Foundation explains how Medicaid works now and what is at stake as policymakers in Washington consider converting program financing to a block grant or per capita cap.

The 3-minute video describes how Medicaid is financed under current law, whom it covers and how spending is distributed across various groups of enrollees, including children, adults, seniors, and people with disabilities. It shows, for instance, that although seniors and people with disabilities comprise about a quarter of Medicaid enrollees, they account for nearly two-thirds of Medicaid spending because they have more complex health needs and therefore higher per person costs.

Proposals to convert Medicaid to a block grant or per capita cap financing could reduce federal Medicaid spending over time and be tied to increased flexibility for states in how they run their Medicaid programs. However, the video slideshow also explains how such proposals may shift costs to states, beneficiaries and providers, as well as limit states’ ability to respond to changes in medical costs and/or demand for Medicaid.

PD Editorial: 20 million reasons to retain and repair Obamacare

http://www.pressdemocrat.com/opinion/6701027-181/pd-editorial-20-million-reasons

For six years, and over the course of five dozen high-profile, low-probability votes, Republicans in Congress vowed to do away with Obamacare.

Republicans denounced the Affordable Care Act as “a crime against democracy” and labeled it “the most dangerous piece of legislation ever passed.” Oklahoma Sen. Tom Coburn went so far as to warn seniors, “You’re gonna die sooner.”

The election of Donald Trump removed the specter of a presidential veto, yet the Affordable Care Act hasn’t been repealed.

Large and boisterous crowds supporting Obamacare at town hall meetings probably are making some lawmakers nervous about the fallout from killing a program that provides insurance for 20 million Americans. Here’s another possible explanation: Despite its shortcomings, Obamacare has delivered on its basic promise — expanding access to health care by reducing the cost of insurance, especially in states such as California that fully embraced the program.

California has reduced its uninsured rate to a record low of 7.1 percent, according to a report issued this month by the Centers for Disease Control and Prevention.

That’s a decline of 9.9 percentage points since the Affordable Care Act took full effect in 2013.

The CDC figures, based on data for the first three quarters of 2016, also showed a marked improvement on a national scale, with 8.8 percent of Americans lacking health insurance. In 2013, the uninsured rate was 14.4 percent.

Let those be benchmarks.

Trump and congressional Republicans still say they’re going to repeal and replace the Affordable Care Act. But any plan that results in fewer people having coverage isn’t a replacement. It’s retrenchment. And that isn’t acceptable.

Despite their harsh criticism of Obamacare, Republicans are far from agreeing on any replacement. They have promised to keep the most popular provisions of Obamacare, including protection for people with pre-existing conditions and coverage of dependents up to age 26. There also is GOP support for retaining requirements that insurers cover treatment of mental illness and substance abuse. Targeted for elimination are the financing mechanisms needed for the program to remain viable — individual and employer mandates and subsidies to help low- and middle-income families pay insurance premiums. A proposal to convert Medicaid to a block grant program almost certainly will result in some states raising the threshold for eligibility.

The numbers simply don’t add up.

Hospitals justifiably fear a return to the days of writing off millions of dollars from providing emergency care to uninsured patients, and insurers will have little choice but to drop out of the exchanges — 11 participate in California — if people can wait until they’re sick before buying coverage.

That’s the death spiral Republicans have been predicting since the Affordable Care Act passed in 2010. It could become a self-fulfilling prophesy if insurers conclude that the risk pool that undergirds the insurance market has been, or will soon be, undermined.

No big program is perfect. Republicans have pointed out Obamacare’s shortcomings for years while refusing to work with Democrats on improvements. If it collapses now, some Republicans will point fingers at Obama and claim the program was fatally flawed. But if millions of people who gained access to health insurance suddenly find themselves without coverage once again, many of them are going to blame the people who wrote the cancellation notice.

 

Conservatives Want Obamacare Repeal, and They Want It Now

http://www.rollcall.com/news/politics/demint-to-congress-repeal-obamacare-now

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Conservatives rallying here are calling for their congressional brethren to keep the faith and quickly gut the 2010 health care law, dismissing concerns about lost health coverage and motivated voters at town halls.

Reported remarks by former Speaker John A. Boehner, R-Ohio, far away from the conservatives gathered at the convention hotel provided the latest cause for alarm. Boehner had said that repeal and replace was “not going to happen,” according to Politico.

“The last I checked, Boehner doesn’t have a vote anymore,” Sen. Ted Cruz of Texas told Roll Call just as a cacophony of barking came from nearby police canines.

“This is a test. It’s a test for Republicans in the executive and both Houses of Congress. Do we honor the promises we made? This election was a referendum on repealing Obamacare,” Cruz said in a brief interview. “I think failure is not an option.”

“We’ve got to keep that promise, and I believe we will,” Cruz said.

 Cruz, who has been among the loudest voices for rolling back as much of the 2010 law as possible, was one of few lawmakers appearing at CPAC during the February congressional recess, flying back from Texas for the occasion. He got a heroes welcome from the conservative activists and media assembled at the hotel just outside D.C.

Heritage Foundation President Jim DeMint, the former South Carolina Republican senator, called on activists attending the Conservative Political Action Conference to push their members of Congress to send to President Donald Trump the same legislation that dismantled the law and was vetoed by President Barack Obama with all due haste.

“We must and we can repeal Obamacare now,” DeMint said. “They should send that same bill to President Trump right now.”

DeMint called the idea that there needs to be a replacement on the front end, “absolutely ludicrous.”

 

The left rallies to save Obamacare with passion but little cash

http://www.politico.com/story/2017/02/obamacare-progressives-town-halls-235333

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Obamacare is blowing up congressional town hall meetings from California to Virginia. But high rollers aren’t stepping up to write checks to defend the law and possibly turn voter outrage over losing coverage into a sustainable movement.

Though many Republicans charge the town hall sessions are stoked by moneyed interests and professional protesters, health care groups and foundations that have been crucial to the Affordable Care Act cause have remained on the sidelines. Without cash, the smaller progressive organizations left could be hard-pressed to fight a long battle as conservatives spend heavily to pressure lawmakers to finish off the law and, possibly, revamp Medicaid.

“If you’re looking for where funding used to go to fight for the health care bill … I think you gotta keep looking,” said Ezra Levin, a former Democratic congressional staffer now helping direct the Indivisible Project, which is organizing pro-Obamacare demonstrations and other protests against President Donald Trump’s agenda. “It’s not coming to us, at least not right now.”

The flow of funds began slowing not long after the law was passed. After securing former President Barack Obama’s signature domestic policy achievement, key players involved with messaging and advocacy declared victory and moved on without fully completing the sales job. The Health Care for America Now coalition, one of the most audible voices in getting the law enacted, folded in late 2013 after mounting a $60 million campaign to pass Obamacare and protect it during implementation.

It’s left to groups such as the Indivisible Project to confront GOP lawmakers and tap outrage or voter anxiety over the party’s repeal-replace effort. The progressive forces also include the Protect Our Care campaign backed by health consumer groups, and some of the original backers of Health Care for America Now. Another group, the Alliance for Healthcare Security, has aired several rounds of ads that are largely being funded by the Service Employees International Union, though the SEIU declined to specify how much it had contributed.

Huge amounts of cash for advertising and outreach may not be as essential in a social media-fueled crucible, where town hall confrontations can almost instantly go viral and organizers can rely on Facebook and other tools to mobilize. The pro-ACA groups scoff at the notion advanced by the Trump administration and some GOP lawmakers that Democrats are paying protesters to make a ruckus over Obamacare at town halls. “To say that we’re a ‘grasstops’ thing is a complete lie,” said Indivisible Project co-founder Angel Padilla.

But the pro-ACA groups are up against formidable foes. Republicans intent on not only dismantling the ACA but capping the open-ended nature of Medicaid are getting backing from money powerhouses such as the American Action Network, which is aligned with House Republicans, and One Nation, a group with ties to Senate GOP leadership that’s spending millions of dollars targeting vulnerable Democratic senators up for reelection in 2018.

Data Note: Variation in Per Enrollee Medicaid Spending Across States

Data Note: Variation in Per Enrollee Medicaid Spending Across States

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President Trump and other GOP leaders have called for fundamental changes in the structure and financing of Medicaid along with repeal of the Affordable Care Act (ACA). The GOP has proposed transitioning Medicaid from its current structure that provides an entitlement to coverage and provides states guaranteed federal matching dollars with no pre-set limit to a block grant or per capita cap. A block grant would limit all federal Medicaid spending and per capita cap could limit federal funding per enrollee. To understand per capita cap proposals, it is helpful to understand variation in per enrollee spending and per enrollee spending growth across states and enrollment groups.  A per capita cap policy could lock in historic variation.  A more detailed analysis of per enrollee spending can be found in this brief. This data note uses interactive maps and tables to show variation in per enrollee spending and spending growth by state and eligibility group.