Good Start, But It’s Not Over Yet!

We breathed a collective sigh of relief upon hearing the news Thursday night that the latest efforts to dismantle the Affordable Care Act (ACA) had failed. A few Republican Senators voted no: our collective phone calls, messages, conversations and personal stories were pivotal in achieving this outcome.

But the fight is not over. The Senate Republicans can still bring the House repeal proposal (the AHCA) back to the floor, and very little debate would now be required before a vote. There are two new proposals in the works – the Cassidy-Graham proposal would turn the ACA into a block grant and put additional burden on state budgets, including a portion of the premium credits and subsidies that is currently federally-funded. There are bipartisan proposals emerging as well. One is from the House “Problem Solvers caucus” that would immediately shore up the individual market and amend the ACA to ensure funding for cost sharing subsidies, weaken the employer mandate from a 50 employee minimum to 500, and other changes. Yesterday, Senator Alexander, chair of the Senate Health Committee, announced an effort to come up with a market stabilization proposal in September, and he urged Trump not to eliminate cost-sharing subsidies before then (see below).

Meanwhile, President Trump is threatening to make Obamacare “implode” by ending cost-sharing subsidies, which he can do on his own. A decision on this may come this week. This dangerous proposal would wreak havoc in the individual market by forcing insurers to increase premiums or pull out.