Morning Briefing
Summaries of health policy coverage from major news organizations
Marketplace Will Slide Into Death Spiral Under Skinny Plan, Insurers Warn
Health insurers came out strongly against the idea of any bare-bones health-care bill that would repeal the ACA鈥檚 coverage mandate without other measures aimed at stabilizing the law鈥檚 insurance exchanges. 鈥淚f there is no longer a requirement for everyone to purchase coverage, it is critical that any legislation include strong incentives for people to obtain health insurance and keep it year-round,鈥 the Blue Cross Blue Shield Association said in a statement. 鈥淎 system that allows people to purchase coverage only when they need it drives up costs for everyone.鈥 (Armour, Wilde Mathews and Hackman, 7/26)
Betting that thin is in 鈥 and might be the only way forward 鈥 Senate Republicans are eyeing a 鈥渟kinny repeal鈥 that rolls back an unpopular portion of the federal health law. But experts warn that the idea has been tried before, and with little success. Senators are reportedly considering a narrow bill that would eliminate the Affordable Care Act鈥檚 鈥渋ndividual mandate,鈥 which assesses a tax on Americans who don鈥檛 have insurance, along with penalties for employers with 50 or more workers who fail to offer health coverage. (Appleby, 7/27)
Senate Republicans are hoping a 鈥渟kinny鈥 repeal bill can solve their stalemate over dismantling Obamacare. But this partial Obamacare repeal 鈥 which is gaining steam in the Senate 鈥 could destabilize already wobbly Obamacare insurance markets, make premiums jump and increase the number of uninsured by millions, health policy experts say. 鈥淚 call it the 20-percent-increase-in-premiums-and-at least-15-million-out-of-insurance plan,鈥 Sen. Claire McCaskill (D-Mo.) said. 鈥淚t鈥檚 a terrible idea.鈥 (Demko, 7/26)
Few experts believe that the employer mandate has had much effect, largely because the vast majority of large employers already provide health benefits. In fact, when the Obama administration delayed implementation of the mandate, there was little evidence that employers started dropping coverage. Repealing the so-called individual mandate is potentially more problematic. Independent analyses by the Congressional Budget Office, or CBO, and others suggest that without some kind of penalty, many healthy Americans would not get insurance until they were sick. That would push up health insurance costs, causing what people in the business call a death spiral. (Levey, 7/26)
Governor Charlie Baker has signed a letter urging US Senate leaders from both parties to set aside a 鈥渇lawed鈥 attempt to repeal the Affordable Care Act, which is commonly referred to as Obamacare. Senate Republicans are now trying to pass what has been referred to as a 鈥渟kinny repeal鈥 of Obamacare, which would likely include changes to the law such as dropping its requirements that people buy insurance and large employers provide health plans to their employees, but no outright repeal. (McDonald, 7/27)