ACHA gets a Thumb’s Down, but…. WAIT!

What’s happening with Obamacare this week?
I hear a rumbling that “Repeal and Replace” has worked up some negotiable language to lure the far Right back to the table. Remove three KEY provisions of the ACA that regulate insurance carriers and the chairman of the House Freedom Caucus (Meadows R-NC) may support a “Repeal and Replace” of Obamacare.
These KEY provisions are responsible for the ACHA’s House Committee bill tanking last month as they were still in the proposed bill, and therefore, would have done little to lower insurance premiums. And, as I wrote before, the far Right said “NAY!”
Folks on the Hill suggest that an offer has been floated by VP Pence that could entice Republican hold outs to two-step on over to the new bill. This “offer” would lop off three major provisions of Obamacare: coverage mandates, community rating, and guaranteed issue. There is further whispering to allow states to opt out, as well.
The most basic actuarial thinking suggests that eliminating these KEY provisions will improve the physical and financial health of the Exchange over time. However, it is important to note that these same provisions were created to help sick people who need insurance — the very ones who drive up the cost of premiums for the healthy, dis-incentivizing them from buying into the Exchange altogether. An idea to setup a high-risk pool was batted around to place the insured people with expensive medical treatments or diagnoses. The premiums charged for the pool would inevitably be set commensurate with the healthcare spending of the insured population in the pool. READ – pricey!!!
I have to venture a guess to say that the more moderate Right will not go for a complete elimination of all these KEY provisions.
Keep reading our BLOG posts to get briefed on “Repeal and Replace” activities and how they relate to your Employer-sponsored health plans. And, please reach out and let us know how The Sorin Group can help you and your plan stay compliant with the ACA, DOL and the IRS. That’s what we do!

Posted in: Affordable Care Act

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  1. Bob April 19, 2017

    This is really good information!

    reply

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