The Trump administration has toyed for months with the idea of withholding cost-sharing reduction (CSR) payments to insurance companies participating in the individual insurance marketplace implemented by the Affordable Care Act (ACA). This has injected a great level of risk into the healthcare system which has in turn created a lot of uncertainty and confusion. These CSR payments are intended to help low-income individuals with income between 100% and 250% of the federal poverty level pay for co-pays, co-insurance, and deductibles. The ACA limits to a percentage of their income the amount of cost-sharing these individuals pay. For instance, an individual with an annual income of $17,000 might only have a $125 deductible compared with a $2,500 deductible for someone with a $25,000 annual income under the same insurance plan. (See a detailed description of CSR payments here). The federal government makes CSR payments to insurance companies to balance out the difference between what the individual pays and what the insurance company charges (fortunately, the Trump administration today stated that it will make CSR payments for August).
The Congressional Budget Office (CBO) on August 15threleased an analysis on the impact that withholding the CSR payments would have on insurance premiums and insurance coverage. According to the CBO report, insurance premiums for individual insurance coverage would increase by 20 percent in 2018 and by 25 percent by 2020, while 5 percent of people would live in areas that would have no insurers in the non-group market in 2018.
Furthermore, withholding CSR payments would increase the federal deficit by $194 billion from 2017 through 2026, largely as a result of higher federal premium tax credit payments. Higher federal deficits would also put pressure on existing federal healthcare and social services programs, including Medicaid, and would further threaten the ability of the federal and state governments to provide health care services to the nation’s vulnerable populations.
In addition to the chaos and uncertainty the Trump administration is causing with respect to CSR payments, it is also making moves to undo some of the progress made under the ACA toward achieving quality outcomes and a higher degree of care coordination. A recent rule proposal published on the website of the Office of Management and Budget would eliminate the mandatory implementation of the bundled payment models for cardiac care coordination and cardiac rehabilitation, as well as implement changes to the comprehensive care joint replacement model. These advanced payment models promote care coordination and place an emphasis on patient outcomes and quality of care; elimination of these models would be a detriment to patients and nurses alike.
Stable payment systems and innovative payment models which emphasize care coordination and patient outcomes will better enable nurses to provide quality care and ensure that patients are able to receive the best quality of care in a timely fashion and with better outcomes. As such, the American Nurses Association strongly supports both the federal CSR payments and the implementation of the aforementioned advanced payment models.
Following a dramatic late night vote that saw Senators reject Majority Leader Mitch McConnell’s (R-KY) so-called “skinny” bill repealing the Affordable Care Act (ACA), lawmakers from both sides of the aisle are publicly calling for a fresh approach to reforming health care that embraces bipartisanship and transparency, and actively seeks solutions from experts who know health care best, including America’s 3.6 million nurses.
Sens. Susan Collins (R-ME), John McCain (R-AZ), and Lisa Murkowski (R-AK) joined with all 48 Senate Democrats to vote against legislation that would’ve stripped the individual and employer mandates introduced by the ACA, among other harmful provisions, and which was intended to pave the way for a conference committee of representatives from both chambers, who would be responsible for crafting a bill that both could pass.
But House Speaker Paul Ryan (R-WI) seemed unwilling to guarantee that his chamber wouldn’t just skip the conference process and pass “skinny” repeal itself, prompting McCain and others to publicly withhold their support early yesterday evening. While subsequent assurances from Ryan and Vice President Mike Pence were enough to win back the support of some of those Senators, McCain ultimately came to the same conclusion as his colleagues from Alaska and Maine, and voted no.
The nursing community showed up like never before in this fight, driving thousands of calls and e-mails to Congress. Hundreds traveled all the way to Washington, DC last month to deliver our message face-to-face with our legislators: The only way our country can truly reform our healthcare system is by working together. No more closed doors. No more dead-of-night deals. No more decisions made without a single nurse consulted.
While this victory is heartening, we know there are those who will continue pushing lawmakers and the administration to undermine our health system and harm those who have gained coverage as a result of the ACA. If you haven’t yet, please join our RNAction community to learn more and get the latest updates on how you can help ensure that our representatives in Washington continue to protect our care and put patients first.
The healthcare of millions of Americans is currently under threat from multiple branches of government. The non-partisan Congressional Budget Office (CBO) on July 13 released its analysis of President Trump’s proposed FY 2018 federal budget; it continues to threaten the healthcare access of the most at-risk populations of Americans. President Trump’s proposed cuts to Medicaid would result in a $610 billion reduction in Medicaid spending by 2027. This number presumably does not include the additional potential cuts to Medicaid – such as the Better Care Reconciliation Act of 2017 (BCRA) repeal of Medicaid expansion – included in the anticipated $1.25 trillion in spending reductions by 2027 associated with the repeal and replacement of the Affordable Care Act. The Trump budget would severely impact vulnerable populations’ access to vital health care services. These vulnerable populations include children and adults with disabilities, low-income elderly individuals, individuals with chronic conditions, individuals with mental health conditions and substance use disorders, and individuals who need long-term supports, such as home and community-based services and skilled nursing facilities. Medicaid is a critical source of funding for these services and it has broad public support. Such enormous reductions in Medicaid spending would inevitably force states to make tough decisions as to which services to provide to which of these vulnerable populations, ripping away from millions of Americans their only source of healthcare coverage.
Congress, meanwhile, has its own plans for reducing Americans’ access to critical healthcare services. According to the CBO, the Senate’s BCRA would also reduce Medicaid spending dramatically – by $756 billion through 2026. The plan would roll back Medicaid expansion and would create a per-capita cap on the amount of federal Medicaid funding states receive, limiting the amount of Medicaid funding available to states even beyond 2026. These reductions would impact vulnerable populations in a way similar to those under President Trump’s budget. Furthermore, the BCRA would reduce subsidies to pay for individual health insurance coverage by $396 billion by 2026. These changes would leave an additional 22 million Americans without healthcare coverage by 2026. The numbers are even worse for a straight repeal of the Affordable Care Act (ACA), which the CBO estimates would leave 32 million more American uninsured and cause insurance premiums to double through 2026. Meanwhile, the Republican Study Committee – the House Republicans’ conservative policy making arm – has released its budget priorities for the FY 2018 budget. These include a complete repeal of the ACA, a conversion of Medicaid into a block grant or per-capita cap program (see ANA’s policy primers on Medicaid block grants here), and phases in an increase in the Medicare eligibility age.
These developments are bad enough on their own. But they have also overshadowed the fact that the Children’s Health Insurance Program (CHIP), which provides healthcare coverage to 8 million American children, is up for reauthorization this year. If CHIP is not reauthorized by September, federal CHIP funds will not be available to states and current funds would run out within a year, thus putting healthcare access for those 8 million children at risk. CHIP reauthorization has been overlooked in the battles over healthcare reform in the House and Senate, and only one hearing on the subject has been held in either house during this Congress.
The Senate is still in the process of deliberating healthcare reform and the dismantling of the ACA. All of these healthcare reform proposals fly in the face of ANA’s 4 core principles of health system transformation and place our nation’s most vulnerable populations at risk of losing vital healthcare services. While the prospects for any bill to pass still look dim, ANA urges you to keep the pressure on your senators and representatives to ensure that they know that nurses do not support these reform efforts. Contact your elected officials today to let your voice be heard!