Like many people here in
central Illinois, I got an email from my Republican Congressman Darin LaHood, explaining
why he voted for the latest Republican health plan. He called his message “The
Truth about the American Health Care Act (AHCA)”. Then the Congressional Budget
Office (CBO) released its non-partisan analysis of how the AHCA would actually
work. Let’s see what the truth is.
Perhaps the most important
element of any health care policy is how many people will be covered. The great
achievement of Obamacare was shrinking the number of Americans without health
insurance. The Center for Disease Control says that proportion
dropped from 16% in 2013 to 9% in 2016. The CDC adds: “the greatest
decreases in the uninsured rate since 2013 were among adults who were poor or
near poor.”
LaHood says, “our bill will
increase access”. The CBO tells a
different story: “enacting the American Health Care Act would increase the
number of people who are uninsured by 23 million in 2026” compared to
Obamacare. That would mostly happen in one year: “in 2018, 14 million more
people would be uninsured”.
LaHood also said, “this bill
does not undermine preexisting conditions.” Obamacare required
insurers to cover everyone, regardless of preexisting conditions. The
Republican AHCA allows states to apply for a waiver of the federal requirement
that insurance plans cover preexisting conditions, and then sets up so-called “high-risk
pools” of money to help pay for the most expensive patients, that is, those
with preexisting conditions. Those people would pay higher premiums, but still
be insured.
What LaHood doesn’t say is
that the amount of money that the Republican AHCA allocates to the pools is not
enough to cover people, especially poor people, with preexisting conditions.
The CBO says: “people who are less healthy (including those with preexisting or
newly acquired medical conditions) would ultimately be unable to purchase
comprehensive nongroup health insurance at premiums comparable to those under
current law, if they could purchase it at all.” The bill does undermine people
with preexisting conditions.
LaHood actually said
that himself. Because Illinois is a Democratic state, he said, “There’s
nobody who said that Illinois is going to seek a waiver whatsoever, so the
insurance that people have right now, they’re going to be able to maintain
that. ... And they won’t charge you higher premiums if you maintain your coverage.
I believe pre-existing conditions for my constituents are adequately protected
in this legislation that we passed.” Americans in other states won’t
be so lucky.
LaHood says that the
Republican bill will “drive down costs”. But the CBO says it’s much more
complicated, and that “some people enrolled in nongroup insurance would
experience substantial increases in what they would spend on health care”.
Those people are the elderly, the unhealthy and the poor.
The CBO says the AHCA “would
reduce federal deficits by $119 billion over the coming decade.” Here is how
that would happen, again details missing from LaHood’s message. Medicaid
spending, the federal health care program for the poor, would be cut by $834
billion, about 25%, a huge cut. That would partially be accomplished by putting
a cap on how much Medicaid money would be spent on an individual.
Why does the plan save only
$119 billion when Medicaid will be cut by $834 billion? The ACHA is also a
giant tax cut for rich people, over $600 billion. The very
very richest families, those making over $300 million, would each get an
annual tax cut of about $7 million. Obamacare included extra taxes on couples
making more
than $250,000, 3.8% on investment income and 0.9% on wages. Those families
are in the top 2% of Americans, and have seen their incomes rise much faster
than the rest of us over the past 20 years. Those taxes would disappear. More
families who itemize deductions on their taxes, again the wealthiest, would be
able to deduct medical expenses. Families making as much as $290,000
a year would get some federal credit when buying health insurance. Low-income
Americans would directly pay for these tax cuts, because their expenses would
go up: the big losers in the Republican plan would be older
Americans with low incomes, exactly the people who benefitted from
Obamacare.
Every health care plan
creates winners and losers, people who get more coverage or pay lower premiums
than before, and people who lose coverage or pay higher premiums. Obamacare
greatly expanded coverage, but led to some higher premiums and higher taxes,
because the new people who got covered were typically those who cost more to
insure: poor people and those with bad health histories. The Republican AHCA
reverses that – poor Americans will be the losers, while the rich will win big.
Telling the truth also means
telling the whole truth. Did LaHood tell the truth about the Republican health
care bill? No. He lied about increasing access. He didn’t mention the tax break
for the rich. He lied about the reduction in protections for people with
preexisting conditions. He didn’t mention that the poor would pay more for
health care.
That’s just like everything
else in the Republican agenda for America – give money to the rich, take
benefits from the poor. But don’t expect Darin LaHood to tell you the truth
about that.
Steve Hochstadt
Jacksonville IL
Published in the Jacksonville
Journal-Courier, May 30, 2017