Healthcare: Take 2 in the Senate


So what’s the new plan? Prior to the 4th of July recess, Leader McConnell delayed the vote on the Better Care and Reconciliation Act (BCRA), which would get rid of the “individual mandate” implemented by the Affordable Care Act (ACA) and cap funding for Medicaid, among other major provisions. The bill includes tax credits that help people pay for coverage which are tied to income, instead of just age. It also removes taxes on high-income Americans that help pay for the ACA. However, it keeps the “stay on your parents’ plan until you’re 26 years old” rule and the rule that says insurance companies can’t charge people more if they have pre-existing conditions. A lot of people didn’t like version 1, so today, Leader McConnell revealed BCRA 2.0 in an attempt to reach 50–the magic number of votes it would take to pass this legislation through the Senate. This new language includes an unpopular amendment from Sen. Ted Cruz (R-TX), an original opponent of version 1.

BCRA 2.0 (via the Senate Committee on the Budget):

  • Out of Pocket: An additional $70 billion is dedicated to driving state-based reforms, which could include help with driving down premiums through cost-sharing, Health Savings Accounts (HSA), and other innovative ideas to help pay for health care costs. This is in addition to the $112 billion in funding already in the original bill.
  • Heath Savings Accounts for Premiums: A provision has been included in the bill that would allow people to use their HSAs to pay for their premiums.
  • Resources for Combating Opioid Epidemic: $45 billion is dedicated for substance abuse treatment and recovery.
  • Skeleton Plans: Individuals who enroll in catastrophic plans would be eligible for the tax credit subject to eligibility requirements. These plans are higher deductible plans that cover three primary care visits a year and have federal protections that limit an individual’s out-of-pocket costs.
  • Taxes: Does not include 3.8% net investment income tax, the additional Medicare Health Insurance (HI) Tax, or the remuneration tax on executive compensation for certain health insurance executives.
  • Medicaid Revisions: Disproportionate Share Hospital (DSH) changes the DSH calculation from per Medicaid enrollee to per uninsured.
    • Public Health Emergency Funds: Will not be counted toward the per capita caps or block grant allocations for the declared period of the emergency.
    • Expanded Block Grant Option: States will be allowed to add the expanded Medicaid-eligible population under the block grant if they opt to do so.
  • High Risk Population: Payments could be made available to specified health insurers covering high-risk individuals enrolled in the qualified health plans on the Affordable Care Act’s Individual Exchange.

What do the Democrats think? Yesterday, in anticipation of the release of BCRA 2.0 the House Democrats introduced their answer to healthcare reform.

“A group of House Democrats has produced its own healthcare reform proposal to improve upon the nation’s healthcare system shaped over the last 7 years by the Affordable Care Act (ACA). The New Democrat Coalition’s Affordable and Accessible Health Care Task Force has come up with the Solutions Over Politics plan to build upon the healthcare infrastructure put in place by the ACA. This plan would include an annual $15 billion reinsurance fund to pay for high-cost enrollees, continue the ACA’s cost-sharing reduction payments, increase outreach to boost enrollment in marketplace plans, implement a Medicare buy-in option for older Americans not yet eligible for Medicare, expand premium tax credits to help individuals pay insurance premiums, and expand the availability of catastrophic health plans to encourage younger, healthy people to buy coverage.” (via The Hill)

What does ANA think? We still don’t like it.

hc-3What happens next? The CBO will evaluate Version 2.0 and release a score on Monday. The CBO’s report will assess the impact of the new bill and predict how much it will cost or save the Federal Government. In the past, this hasn’t gone so well. The Senate is expected to vote on the bill soon (if Leader McConnell can rally the votes).

What are WE doing and what can YOU do? ANA will continue to urge the Senate to #ProtectOurCare. If you haven’t done so already, be sure to call your Senator and remind them to put patients first!

Buyer Beware: Ted Cruz Goes Pro-Choice


The concept of the Trojan horse is familiar to us all. After a 10 year siege of Troy, the invading Greeks pretended to sail away—but left behind the infamous horse with a group of elite soldiers hidden away inside of it. The Trojans pulled the horse into the city as their victory trophy, and the rest, as they say, is history.

But to understand why the Cruz amendment to the Senate healthcare bill is a Trojan horse that will wreak havoc on the individual insurance market, it’s necessary to understand a more complicated concept: adverse selection.

For health insurance markets to function normally there must be a mix of healthy and sick people that purchase any given product. Adverse selection occurs when purchasers of insurance recognize that they are healthier or sicker than the average consumer, and therefore buy either more or less health insurance.

This becomes a problem when sicker consumers all self-select into one health insurance product, and healthy consumers all self-select into another health insurance product. In that instance, an adverse selection problem has occurred, and the product purchased by the sicker consumers is destined for a turbulent ride as premiums skyrocket and only the sickest of the sick continue to pay them. This is the ominous “death spiral” we so often hear about.

Put in this context, it’s easy to see why the Cruz amendment to the healthcare bill presents an adverse selection problem. The Cruz amendment, as you know, will allow insurers to sell non-compliant health insurance plans alongside compliant plans. These skimpier non-compliant plans will cover fewer maladies, have higher deductibles and copays, will be exempt from requirements to provide preventative care at no out of pocket cost, and will undoubtedly be much cheaper than compliant health insurance plans.

Those who are not yet sick will flock to these plans. And the sick will stick to those that actually provide coverage. But without the benefit of a healthy mix of consumers in the compliant plans, they will be in for a turbulent ride.

If you’re healthy, this may seem like a great deal. The only change you’ll notice at first will be an increase in the number of go-fund me pages you see on Facebook for those who purchased non-compliant plans and made the mistake of getting sick, having a heart attack, or coming down with cancer. But sooner or later, we all make the change from healthy to sick, from subsidizer to subsidized—that’s life, and that’s health insurance. And when we do, we’ll all be a lot better off if we don’t fall for the Trojan horse of the Cruz amendment to the healthcare bill.

Senate Healthcare Bill Threatens to Reduce Care for Older Americans


Medicaid has grown into one of the largest and most critical payers of healthcare services in the country. It covers more than 70 million Americans annually and accounts for roughly one-sixth of all U.S. healthcare expenditures. It provides millions of children and pregnant women, aged, blind, and disabled individuals, and other low-income and vulnerable populations with the ability to receive crucial healthcare services. One group which benefits the most from Medicaid is the elderly. Medicaid pays for services such as care in skilled nursing facilities, home- and community-based services, and other services on which many elderly Americans rely. Medicaid is the largest payer of long-term services and supports in the country; it pays for nearly half of all nursing home costs and represents a disproportionate share of all Medicaid spending. As the population ages and more Baby Boomers reach retirement age and beyond, the demand for these long-term services and supports will continue to increase. Older Americans with fixed incomes will require more assistance paying medical bills even as their age makes it more likely that they will face complex medical issues such as heart disease, dementia, Alzheimer’s, and diabetes.

Instead of investing in this critical population for the future, the Republican-controlled Congress’s and the Trump administration’s actions demonstrate that they do not place a priority on the healthcare and well-being of older Americans. The Senate’s Better Care Reconciliation Act of 2017 (BCRA) would phase out Medicaid expansion over three years and would allow states to cap Medicaid spending through either a per capita cap mechanism or through a block grant (read ANA’s policy primer on Medicaid block grants here).  According to the non-partisan Congressional Budget Office, the Senate bill would result in a 26 percent reduction in Medicaid spending by 2026 (a total reduction in spending of roughly $800 billion over the same time period) and a 35% reduction in Medicaid spending by 2036. The Trump administration’s budget proposal would also cut over $600 billion in Medicaid funding, not including changes made through the effort to repeal and replace the Affordable Care Act. Such cuts would squeeze state Medicaid budgets, forcing them to make tough decisions about the provision of care and likely resulting in restricted access and lower quality of care for the nation’s seniors.

It is clear that the Senate’s BCRA is more intent on saving money and providing tax cuts to the wealthy than they are with ensuring that Americans’ parents and grandparents receive the critical care that they need just as they confront complex medical needs and limited incomes. It is critical that nurses make their voices heard through ANA’s call campaign. Let your senator know that this bill is unacceptable and will negatively impact the lives and healthcare of millions of older Americans!