Insurance
premiums and out-of-pocket costs would soar and Medicaid funding would be
slashed
By
Dena Bunis, AARP
A last-ditch effort by Republicans to repeal the Affordable Care Act (ACA) would make health coverage unaffordable for millions of Americans and put Medicaid back on the chopping block.
A last-ditch effort by Republicans to repeal the Affordable Care Act (ACA) would make health coverage unaffordable for millions of Americans and put Medicaid back on the chopping block.
The
Graham-Cassidy measure, authored by Republican Sens. Lindsey Graham of South
Carolina and Bill Cassidy of Louisiana, would gut the consumer protections of
the ACA and give states free reign over how to reshape health care coverage for
millions and millions of Americans.
The
legislation would impose an “age tax” on older Americans by eliminating two
sources of financial assistance that help make health coverage affordable and
accessible.
First,
Graham-Cassidy would take away the premium tax credits that help seniors pay
for health coverage. About 6 million 50- to 64-year-olds buy their health
coverage in the individual market, and about half of those individuals receive
tax credits to help pay their premiums, according to an analysis by the AARP
Public Policy Institute.
Second,
the measure would eliminate vital cost-sharing payments that help low-income
Americans — especially those over 50 — afford deductibles and copayments for
medical services. About 58 percent of adults enrolled in ACA marketplace plans
get cost-sharing assistance, and 35 percent of those individuals are between 50
and 64 years old.
Graham-Cassidy would also allow states to get federal waivers for insurers to charge older Americans more so as to lower the cost for younger policyholders. The ACA limits the expense for older policyholders at three times the amount younger ones pay.
According
to the AARP analysis, for a
60-year-old earning $25,000 a year, premiums and out-of-pocket costs could
increase by as much as $16,174 a year. If that 60-year-old lives in a state
that allows insurers to charge older individuals dramatically higher premiums,
he or she would face an additional $4,124 increase in premiums.
For
example, in Maine, under the ACA, a 60-year-old earning $25,000 a year would
pay an average of $1,608 a year in health insurance premiums in 2020. Under
Graham-Cassidy, that same 60-year-old could see that premium increase by as
much as $10,404. A 60-year-old in Alaska could see his or her premium increase
by $26,986 in 2020.
“The Graham-Cassidy bill is
a last-ditch effort to ram a bad bill, developed behind closed doors,
through Congress,” said David Certner, AARP legislative policy director for
government affairs.
“Like earlier bills, it would increase health care costs by including an age tax, reducing coverage and undermining protections for people living with conditions like cancer or diabetes.”
“Like earlier bills, it would increase health care costs by including an age tax, reducing coverage and undermining protections for people living with conditions like cancer or diabetes.”
The
bill also would fundamentally change the Medicaid program, which has been a
safety net for millions of poor Americans and people with disabilities.
Currently, 17.4 million older Americans and people with disabilities rely on
Medicaid.
Over
20 years, Graham-Cassidy would slash Medicaid funding by $1.2 trillion
to $3.2 trillion, turning control of the program to the states and shifting
costs over time to states and Medicaid enrollees.
The
bill also would end the ACA’s Medicaid expansion and instead send lump sum
payments to the states from 2020 to 2026. But these payments wouldn’t make up
for the elimination of tax credits, cost-sharing payments and money the states
got to expand Medicaid. And, in 2027, federal Medicaid funds would be
eliminated, leaving states on their own.
That
would mean states would have to decide how to make up for that financial
shortfall, probably by eliminating services, reducing eligibility for benefits
or cutting payments to doctors and hospitals — something that would likely
result in fewer providers being willing to see Medicaid patients.
It also means that states would likely be forced to cut services that many older Americans rely on for long-term care, including home- and community-based services and nursing home care.
It also means that states would likely be forced to cut services that many older Americans rely on for long-term care, including home- and community-based services and nursing home care.
Majority
Leader Mitch McConnell (R-Ky.) has said he will bring the Graham-Cassidy bill
to the floor for a vote only if he knows he has 50 votes.
If Republicans get 50 votes, then Vice President Mike Pence would cast the tie-breaking yes vote. As of Wednesday, the bill sponsors said they were close to reaching that threshold, and the majority leader announced he intends to bring the legislation to the Senate floor next week.
If Republicans get 50 votes, then Vice President Mike Pence would cast the tie-breaking yes vote. As of Wednesday, the bill sponsors said they were close to reaching that threshold, and the majority leader announced he intends to bring the legislation to the Senate floor next week.
Also
of Interest
