Published: Mon, July 17, 2017
Research | By Jo Caldwell

Schumer: Cruz Amendment makes GOP health care bill even worse

Schumer: Cruz Amendment makes GOP health care bill even worse

If your business is dependent on cooperation from people who publicly celebrate every time a firm quits the market, you may have some reservations about staying in the market. It would reduce premiums mainly by eliminating coverage, giving states discretion to allow medical insurance policies to exclude treatment for serious ailments and to jeopardize coverage for the millions of people already afflicted with something.

The Affordable Care Act ended all that. Yes, the sickest people, the ones who need health insurance most, will do whatever is necessary to get insurance, and the high-risk plans might work for them. The rules sparked anger that people were being forced to buy coverage for issues they didn't have - maternity care for guys is a textbook example.

The insurance industry says the Cruz-Lee approach is bad policy. Cruz stated, "I am encouraged that the revised bill ensures consumers have the freedom to choose among more affordable plans that are tailored to their individual healthcare needs, and expands health savings accounts so that consumers can pay health insurance premiums on a pre-tax basis". Mike Lee that critics say could make plans with adequate coverage unaffordable to those who have certain medical conditions.

There is only one way non-subsidized health insurance products can be sold in the individual health insurance market for low prices.

Indiana University law professor David Gamage told us pricing would drive the market.

Lower-income people would see some protections, thanks to tax credits for people making less than 350 percent of the federal poverty level.

Matthew Fiedler, a fellow at Brookings Institute's Center for Health Policy, confirmed this double-dipping to TPM. That has made coverage more robust, but it's also raised premiums for relatively healthy people. "This includes consumer outreach, a function that is hugely important to insurers - if the Trump administration decides not to allocate resources toward outreach for the next enrollment period, insurers might reasonably expect that the people who do sign up will be sicker, on average". Despite some improvements - nixing major tax cuts for the rich - it still commits the policy sin of capping and gutting Medicaid. Men may not ever have to go through the ordeal of an emergency C-section, but as Ryan noted, women will never have to undergo a prostate cancer screening-but they don't have the luxury of ducking out of health care plans that incorporate them.

There is uncertainty, though, as to what the states will do if the Senate bill becomes law. A lot will depend on how well the programs for those with preexisting conditions are promoted and administered, how insurers and consumers respond, and how much money lawmakers throw at this in the final version of bill. Because of that fact, insurers in many states have fled the market due to political uncertainty.

"Supporting this amendment should be a no-brainer", McIntosh said in a statement.

"I have some questions about what the ramifications are for people with pre-existing conditions in terms of pricing", said Capito. These non-compliant plans wouldn't have to cover the "essential health benefits" that Obamacare plans on the exchanges are required to cover, but they'd be a lot cheaper. By allowing healthy Americans the opportunity to buy cheaper, high-deductible health plans that would otherwise not qualify for Obamacare, the insurance industry essentially gets a subsidy, allowing it to decrease the cost of health plans for those that truly need coverage.

States, Hoffman said, would be faced with passing comprehensive insurance reform. "It's adverse selection", she said.

Like this: