|Principal Writer:||Barry Shatzman|
|Understanding The Issue|
|Legislative & Executive Acts|
|What You Can Do|
Reported NewsHealth Care Policy
Related BillsConcurrent Resolution FY2017
Related Court Cases(2018) Texas v. United States
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What is this about?
President Trump and Republicans in Congress continually have stated an intent to repeal the Patient Protection and Affordable Care Act - also known as ObamaCare.
They also have said they plan to replace it, but have yet to specify what a replacement health care policy might be like.
In this discussion we'll explain attempts to dismantle Obamacare and what it could mean to you..
To better understand what health care public policy is about, read our discussion.
ObamaCare provides previously unattainable protections
ObamaCare continues the nation's basic model for health care in that insurance companies pay for a portion of our health care using money we pay to them as premiums.
It adds several protections, however...such as limiting the amounts many people need to pay for health care, and the types of care insurance policies must cover.
ObamaCare added several tangible protections that did not exist before. These protections include...
ObamaCare also requires that most people obtain health care insurance. This requirement has became known as the mandate.
How would the law be affected?
The components of ObamaCare all are interwoven, so breaking one has the potential of making the entire health care policy unworkable.
Prior to ObamaCare, each state had its own criteria for Medicaid eligibility.
Medicaid Expansion allowed states to increase coverage to anyone earning less than the federal poverty level at little cost to the state. With no federal money to pay for Medicaid Expansion, health care for those Americans who were not covered before ObamaCare would again be uncovered (unless a state decided to now pay for coverage it didn't pay for before).
The federal government helps people pay for insurance through subsidies. So if an insurance company is charging $1,000 a month for a policy and the government's subsidy is $700, you would pay only $300.
If Congress cancels those subsidies, you would need to pay the entire $1,000 in order to keep your coverage.
The mandate to maintain coverage is enforced by the tax penalty for not having it. If that penalty is eliminated, many might choose to go without coverage - especially those who consider themselves to be in good health. From an insurance company's point of view, that would mean less income to cover the expenses of the less healthy customers who remain. Those expenses would be covered by raising premiums for their remaining customers.
Eliminating the tax penalties on large employers who do not offer health care insurance to their employees means that fewer employees will get insurance from their employer. They will need to buy insurance on their own (effectively a pay cut) or go without coverage.
Many of the cost benefits of ObamaCare (Medicaid Expansion, subsidies) are paid for by extra taxes on those with very high incomes and on certain companies in health-care related industries. Eliminating these taxes would mean the federal government would need to find the money to pay for these benefits from somewhere else (or not pay them).
The effect of these things combined would make insurance unaffordable for most people - while those earning very high incomes would save money on their taxes.
Fewer insured, higher premiums
The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) studied what would happen if the PPACA were dismantled this year. The largest effects would start next year, as insurance companies and people already have plans locked in for this year.
Click here to read the Congressional Budget Office analysis.
The healthiest could buy coverage outside the exchange
The previous section discusses health coverage plans purchased through a state's exchange. Unless Obamacare is repealed, those plans still would need to cover everyone - regardless of their health situation.
Without the mandate, people would be free to buy policies outside the exchanges. Those policies, however, might not cover things such as preventive care that ObamaCare requires. They also would be able to discriminate against those with pre-existing conditions - making insurance for those people even more costly.
When Obamacare was being debated, President Barack Obama famously said people could keep their plan if they wanted. That turned out to be untrue for many, because their plans did not cover the essential health benefits that Obamacare requires.
Plans to replace ObamaCare offer fewer protections
There have been, and continue to be, a wide range of proposals to replace ObamaCare as the country's healthcare policy.
They include a 2016 policy analysis by Rep. Paul Ryan and a 2015 bill proposed by Rep. Tom Price (Price later became secretary of Health and Human Services, which would administer any health care policy).
A few concepts in these proposals are common to several other proposals...