Tuesday, October 9, 2018

ACA (Obamacare): Working Despite Trump-GOP Fav Punchline: “Repeal and Replace

Very sick, not fully covered: Attended by Dr. Evil
(Is he dead yet) 

Extremely critical issue for the 2018 midterms and beyond: Perhaps the #1 issue on the table — since it affects us all.

Update on GOP Drive to Repeal and Replace the ACA a quick analysis and although a long post, it has things that need to be said for clarity — enjoy.

Republicans last year succeeded in repealing the Obamacare requirement that people buy health insurance or pay a tax penalty – the so-called ACA mandate.

Trump said that repeal would end Obamacare – it has not and in fact has caused more bad than good contradicting Trump’s: “I’ll give you the best program ever – believe me.” Um, well Mr. Trump: We have proof otherwise – see below:

Purpose of the original ACA mandate: Get everyone insured to get lower prices for everyone with the basic same basic and necessary care. That did not work as hoped or planned and many reasons linger more so today under Trump – the so-called Fixer – more below shows he is not fixing anything.

However, now without the mandate more troubles have evolved:

1. To make up for the losses, insurance companies have had to (and many have already) charged more to the sick or medically vulnerable patients left behind and already with fixed premiums.

2. Premiums set by Trump have risen 232% and with less coverage.

Trump/GOP created the so-called “skinny” plans (official name: “Association Health Plans-AHP”) back in June 2017 some results:

1.  They allow insurance companies to offer cheaper yet less-comprehensive policies.

2.  These “skinny plans” only last up to one year, then customers start hunting all over again.

3.  Since these plans are short-term only up to one year (I note: That sounds like a new cell phone or cable deal wherein they get you hooked on a bargain change deal. But, READ THE FINE PRINT, which only lawyers do. They say small print: “New customers only - only for one year” – then what: We are supposed to just hide, go away, get sicker, or die?)

4.  Companies after one year can charge higher premiums or deny coverage based on medical history and pre-existing conditions, which BTW: Obamacare made illegal for long-term plans and people love that part.

5. These new skimpy or skinny plan initially appeal to young, healthy Americans (that is until they get in a health emergency and then back to someone else paying as they hit the ER’s – something also Obamacare said was not totally necessary except in real emergencies – not routine care that yes, even young people seek and need too despite their views on that).

6.  Some AHP’s may not/do not for example cover basics like Rx drugs or maternity care.

Other Trump plans harm:

Initially, under the ACA users had 90 days to sign up for insurance on the federal marketplace – Trump cut it down to 45 days, and then customers saw the on-line websites closed every Sunday for 12 hours – citing maintenance.

One cause for the “maintenance” shutdowns: The Obama “Navigator program” funding which trained people and companies to help people sign up for insurance  dropped from $62.5m to a mere $10m under Trump. (More saving they can brag about, I guess).

BTW: Trump also cut Obamacare advertising to $10m – a 90% reduction.

Ending cost-sharing reduction payments:

Cost-sharing reduction (CSR) payments from the government to companies reimbursed them for covering lower-income Obamacare patients.

Trump cancelled that system and payments in October 2017 and immediately insurance companies increased their 2018 premiums to offset that programs and thus compensate themselves for any losses.

One bright spot is that ending those CSR payments had little effect on lower-income Americans – they still receive other healthcare subsidies to help them maintain a good plan, but that in turn led to higher costs for patients who pay full-price for their medical coverage.

It is obvious that “Trump-care” is not thinking about the little people.

What is the overall impact?

1.  Obama's signature accomplishment – the ACA – basically is still in good standing.

2.  The 2018 government report (CMS: The Centers for Medicare & Medicaid Services) shows 11.8 million Americans re-enrolled in Obamacare plans, and 27% were new users.

3.  That is around 400,000 fewer people than 2017, and a smaller figure than expected given Trump’s efforts to wipe out Obama entirely.

Key Study Points:

Gallup found 55% of Americans worry about having access to and affording good medical care – the 5th year healthcare has topped issues.

Gallup also reported the uninsured rate had dropped to a record low 10.9% in 2016, but has risen to 12.3% under Trump (that he said would not happen).

Reminder: What does the existing law do?

The Patient Protection and Affordable Care Act, known as Obamacare or the ACA, was the largest overhaul of our healthcare system since the 1960s. 

1.  It aimed to eventually slow the growth of healthcare spending, which was still is the highest in the world. 

2.  It intended to extend health insurance coverage to the estimated 15% of Americans who lacked it and were not covered by other health programs for the poor and elderly.

3.  It created by law, state-run marketplaces - with websites akin to online shopping sites - where individuals can compare prices as they shop for coverage.

Some of the more popular provisions included:

1.  Children can stay on their parent's health care plan until age 26.

2.  No one can be denied insurance for a pre-existing medical condition.

3.  Companies can no longer charge women more than men.

4.  Businesses with more than 50 full-time employees must offer health insurance.

So, why do conservatives still oppose the ACA (Obamacare)?

They say – as they say about most things not their idea – it imposes too many costs on business, with many describing it as a “job killer.”

However, under Obamacare, healthcare sector jobs rose by 9%. A 2017 study found that around 2.6 million jobs could be lost by 2019 if it is repealed under Trump.

They decry Obamacare as an unwarranted intrusion into the affairs of private businesses and individuals.

Noteworthy: 

1. During the Obama presidency, the GOP-run House voted over 50 times to repeal the ACA and twice forces a partial government shutdown.

2. After repeated legal challenges, in 2012 the Supreme Court declared Obamacare constitutional.

3.  Despite having a majority on Capitol Hill under President Trump, a Republican repeal bid again failed and in dramatic fashion this year.

3.  Democrats many times have acknowledged ACA is not perfect and they have offered numerous times to work with the GOP to fix any flaws. The GOP refuses out of stubborn arrogance.

Related must-read sites:



Also related – short article from a Kaiser Family Foundation analysis they found that individual market performance insurers have become profitable again in 2017, and the first half of 2018.

• Insurers' gross margins are getting better. The margins — which measure how much their income from premiums exceeds their costs — are far higher than at any time in the history of the ACA.

• Their second-quarter loss ratios for 2018 averaged 69%, lower than at any point since the earliest years of the ACA.

• Between the lines: Premiums went up a lot between 2017 and 2018 (an average of 23% per member for the second quarter of each year).

B/L and what to watch: There are signs that the ACA population may be both older and sicker, having spent more days in the hospitals in the past 3 years. If so, that could be a sign that healthier customers are dropping out.

My 2 cents: Obama made promises, even with minor fixes (which were needed and the GOP hated in total resisted) was and based on the above working.

Any blame for rising costs, lack of good affordable, full-coverage plans, may I suggest the GOP collectively seek the nearest mirror – they will see a reflection the cause and ineffectiveness of their “resistance” – which they keep blaming on a program that has, is, and continue – but they will not – they are too stubborn and arrogant. Case closed.

But, the good news is outlined above with the more-recent awful Trump steps. 

So, I say: Thanks Mr. Obama — sorry, Mr. Trump Empire, Inc., not even close.

Thanks for stopping by.

No comments: