Indian Country politics and public policy

Commentary by Mark Trahant

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President Donald J. Trump announces executive orders that will end a subsidy for health insurance purchases and allow people to buy less expensive plans that cover fewer medical issues. (White House photo)

Mark Trahant / Trahant Reports

The chaos that is now Trump Care continues.

First, Congress tried to repeal and replace the Affordable Care Act by rolling back that law plus the decades long public health insurance known as Medicaid. That effort failed in the Senate. Twice. And Congress hasn’t given up. There are all sorts of proposals floating that would try yet again through the budget or another mechanism.

Meanwhile the Trump administration is trying to unravel the Affordable Care Act using administrative authority. And, in the process, guaranteeing a network of insurance chaos. The President signed an executive order that eliminates payments to insurance companies to subsidize the cost of health insurance for families that cannot afford the full cost. Insurance companies will likely increase health insurance premiums — and by a lot — or get out of the individual health insurance market all together.

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This policy change impacts American Indians and Alaska Natives who get their health insurance through the exchanges. Under the Affordable Care Act, many tribal members and Alaska Native shareholders quality for a “bronze plan” from exchanges at no cost. A silver plan could also have been purchased, depending on income, using subsidized rates.

The Kaiser Family Foundation figures that insurers will need to raise silver premiums between 15 and 21 percent on average to compensate for the loss of the subsidy payments.

It’s interesting: Ending the subsidy will cost consumers more in states that have not expanded Medicaid (such as Oklahoma) since there are a large number of marketplace enrollees in those states with incomes at 100-138 percent of poverty who qualify for the largest cost-sharing reductions.

The Congressional Budget Office (CBO) estimated that the total payments were $7 billion in fiscal year 2017 and would rise to $10 billion in 2018 and $16 billion by 2027. The House of Representatives sued the Obama Administration to try and stop these insurance subsidies arguing that Congress never appropriated the money.

The CBO also said that ending the insurance subsidies will increase federal deficits by $6 billion in 2018, $21 billion in 2020, and $26 billion in 2026.

A second administrative order will change the way insurance companies write policies. The Affordable Care Act set out standards so that basic health care issues, including women’s reproductive health, would be covered. But the new rules will make it easier for people to buy limited policies that cost less, but cover fewer medical issues.

“Congressional Democrats broke the American healthcare system by forcing the Obamacare nightmare onto the American people. And it has been a nightmare,” the president said. “You look at what’s happening with the premiums and the increases of 100 percent and 120 percent, and even in one case, Alaska, over 200 percent. And now, every congressional Democrat has blocked the effort to save Americans from Obamacare, along with a very small, frankly, handful of Republicans — three. And we’re going to take care of that also because I believe we have the votes to do block grants at a little bit later time, and we’ll be able to do that.”

But the actions by the administration will only lower the cost of health insurance for one group of Americans, young, healthy ones. Insurance costs for nearly every other plan will sharply increase because of these actions. And especially at risk: Patients who are facing expensive medical treatments such as cancer.

Earlier in the week, the administration also rolled back Affordable Care Act coverage requirements for access to birth control. According to the Kaiser Family Foundation: “These new policies, effective immediately, also apply to private institutions of higher education that issue student health plans. The immediate impact of these regulations on the number of women who are eligible for contraceptive coverage is unknown, but the new regulations open the door for many more employers to withhold contraceptive coverage from their plans.”

The actions of the Trump administration mean two things: There will be chaos in the insurance markets as companies and individuals rebalance the value of those policies; and there will be litigation ahead because every one of these policy shifts will be challenged in court.

Mark Trahant is the Charles R. Johnson Endowed Professor of Journalism at the University of North Dakota. He is an independent journalist and a member of The Shoshone-Bannock Tribes. On Twitter @TrahantReports

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