After seven years of waiting for the Republican replacement for the Affordable Care Act, the cat is finally out of the bag. And a scruffy, mangy cat it is. The American Health Care Act was released Tuesday and within hours had been dubbed “Obamacare Lite.” Not a bad label, considering that the American Health Care Act tries to do what Obamacare does, it just doesn’t do it very well. And it will hit Alaskans particularly hard.
The proposed replacement would scrap the The Affordable Care Act’s premium subsidies which are based on people’s income and the cost of insurance where they live. Instead it would provide tax credits of $2,000 to $4,000 per year based on age. This is great if you live somewhere where health care costs are low. Alaska isn’t one of those places. Anyone who has tried to buy health insurance in Alaska knows that $2,000 to $4,000 isn’t going to go very far to get decent coverage.
The New York Times pointed out: “People likely to be hurt under the new plan are those in areas where the cost of coverage is high. Subsidies are now pegged to the cost of a plan within a specific market, but the tax credits in the Republican plan are the same whether you live in Alaska or Minnesota.”
Supporters of the replacement like to say that it will provide “access” to health insurance for everyone. That’s a little like saying everyone has “access” to Mar-a-Largo. As long as you pay the $200,000 membership fee, you can walk right in. Likewise, as long as you have an extra several hundred dollars to pay for health insurance each month, you will get covered. If not, tough luck.
The American Health Care Act also proposes to turn Medicaid into a block grant program and no longer provide Federal reimbursement to states based on the actual cost of care. This will mean a greater financial burden for the state of Alaska, and/or less health care coverage for some of the most vulnerable people in our state.
There is one select group of people who will make out quite well under the American Health Care Act: people making $250,000 or more per year. The replacement plan repeals a tax on high earners that helps pay for the subsidies under the Affordable Care Act. Currently, that tax brings in $26 billion a year. A big fat tax cut for the 1percent, less help for those who can least afford it.
The Affordable Care Act isn’t perfect. However, it is looking better and better. Like it or not, it represents the health care status quo. Let’s work together to fix it, not replace it with a half-baked plan that hurts Alaskans, burdens our state government, and provides its biggest benefits to people who don’t need the help. Please urge Don Young, Lisa Murkowski, and Dan Sullivan to vote “no” on the American Health Care Act.
• David Ottoson is a 38-year-old Juneau resident and local business owner.
