{"id":18210,"date":"2017-03-27T23:20:00","date_gmt":"2017-03-28T06:20:00","guid":{"rendered":"http:\/\/spijue.wpengine.com\/news\/the-medicaid-mess\/"},"modified":"2017-03-27T23:20:00","modified_gmt":"2017-03-28T06:20:00","slug":"the-medicaid-mess","status":"publish","type":"post","link":"https:\/\/www.juneauempire.com\/news\/the-medicaid-mess\/","title":{"rendered":"The Medicaid Mess"},"content":{"rendered":"

The American Health Care Act, spearheaded by Speaker of the House Rep. Paul Ryan (R- WI), has failed. For now.<\/p>\n

AHCA was characterized as nothing short of a public health crisis by Democrat critics, dubbed \u201cObamacare lite\u201d by conservative Republican critics, tweaked time and time again to pacify moderate Republican critics, and deconstructed by everyone \u2013 from media pundits to thousands of citizens \u2013 until in the end the bill satisfied nobody.<\/p>\n

On March 24, Ryan called the vote off, informing President Donald Trump he didn\u2019t have enough Republicans to pass the bill which would have restructured President Barack Obama\u2019s Affordable Care Act.<\/p>\n

Trump wasted little time moving on to addressing tax reform, a sentiment Republican leadership echoed. Congresswoman McMorris Rodgers (R-WA), chair of the House Republican Conference, for example, is hopeful.<\/p>\n

\u201cAlthough I\u2019m disappointed we couldn\u2019t find consensus on how to repeal and replace Obamacare, I\u2019m optimistic about the agenda House Republicans have proposed,\u201d she said to the Juneau Empire, via email. \u201cI\u2019m eager to continue work on the many issues that are important to people in Eastern Washington and around the country, like lowering taxes and putting the people back at the center of our government.\u201d<\/p>\n

Likewise, Ryan didn\u2019t dwell on the loss. In a tweet following the bill\u2019s cancellation, he thanked the president, House GOP members, and the Secretary of Health. \u201cThere remains so much more we can do to improve people\u2019s live,\u201d he wrote. \u201cAnd we will.\u201d<\/p>\n

The bill\u2019s failure is welcome news for the 11 million Americans who gained coverage under Medicaid expansion in 2014, an option under the ACA, as well as for states who can\u2019t afford to pay for the expansion on their own.<\/p>\n

For the Republican party, though, the failure reveals fault lines.<\/p>\n

Ryan\u2019s proposed bill could not bridge the growing gap between moderate Republicans who accepted certain portions of the ACA and conservative Republicans who hated how little the complicated bill seemed to want to wipe Obamacare out entirely.<\/p>\n

Conservative Republicans refused to budge on the ACA, a signature piece of Obama\u2019s administration that in large part birthed the growth of the conservative Tea Party faction. In the end, they refused to vote at all, even after amendments were added to mollify them.<\/p>\n

If there was a suitable compromise, it was unknown and unreachable.<\/p>\n

\u201cIf you can figure that out, I recommend buying a lottery ticket,\u201d said Marc Williams of the Colorado Department of Health and Human Services in an interview with the Empire.<\/p>\n

The health care dilemma <\/strong><\/p>\n

Insurance companies want salvation from the Affordable Care Act\u2019s premium-spiking results. Many Americans are demanding a repeal, having never wanted the ACA in the first place. Meanwhile, states which expanded Medicaid, some now wobbling under budget shortfalls, cannot risk losing the federal dollars Medicaid pumped into their treasuries or the inevitable political blowback of cutting medical coverage for 14 million Americans.<\/p>\n

No matter what happens, too much money or too many midterm votes are at stake \u2014 exactly the kind of Beltway politicianship that tends to drive elections and the kind of politicianship Trump and hardline Republicans ran in opposition to.<\/p>\n

Repeal, replace, or repair, no legislator would have escaped unscathed. The proposed bill brought out what can be arguably be called a push poll that demonstrated the political cost to Republicans who might endanger coverage.<\/p>\n

According to the Quinnipiac University Poll, 56 percent of American voters disapproved of the plan, while only 17 percent supported it. Among Republicans, only 41 percent supported the plan.<\/p>\n

\u201cReplacing Obamacare will come with a price for elected representatives who vote to scrap it, say many Americans, who clearly feel their health is in peril under the Republican alternative,\u201d said Tim Malloy, assistant director of the Quinnipiac University Poll.<\/p>\n

Hooked on Medicaid <\/strong><\/p>\n

In policy, \u201cratchet effect\u201d describes when government programs dial back, but not to the original levels before being introduced. A ratchet for Medicaid may not get the chance, and ironically it was Republicans who cranked it tighter despite making the health care issue a talking point for the last eight years.<\/p>\n

According to the Congressional Budget Office, 14 million more people would have been uninsured under the proposed health care law than under Obamacare. By 2026, an estimated 52 million people under age 65 would be uninsured. (Under the ACA, only 28 million would be uninsured by the same year.)<\/p>\n

While Republicans agree the current Affordable Care Act is not sustainable, the reasons are not unanimous. Congressional delegations and governors of several states say it\u2019s only unsustainable because of Medicaid expansion – one of Obamacare\u2019s biggest building blocks. After the ACA went into effect in 2014, 31 states, more than half the country, expanded Medicaid, which offers subsidized health care to low income individuals through federal and state funding.<\/p>\n

Critics of the ACA claim that these states are now \u201chooked\u201d on federal dollars. Florida Republican Gov. Rick Scott \u2014 whose state opted not to expand Medicaid and is currently supporting a full ACA repeal \u2014 made various statements to this effect.<\/p>\n

\u201cWhy would we do that to our citizens – get people hooked on something they didn\u2019t ask for?\u201d Scott said during Politico\u2019s Fifth Annual State Solutions Conference in February 2015.<\/p>\n

Indeed, conservative warnings about government program growth have now crystallized. For some of these states, a Medicaid cut could worsen a budget gap or potentially cause one.<\/p>\n

The congressional delegations and governors of states including Alaska, Arkansas, Colorado, Michigan, New Hampshire, Nevada, and Ohio \u2014 all but one of which have Republican governors \u2014 opposed any kind of Medicaid restructuring that would either lessen coverage for those in the expanded class or dump more of Medicaid\u2019s costs onto state governments.<\/p>\n

Congressmen and state officials in some of the states opposing a Medicaid rollback say treasuries won\u2019t be able to absorb the financial effects of a wide-ranging repeal of the Affordable Care Act, particularly when there are budget holes.<\/p>\n

\u201cWith a $3 billion budget deficit in Alaska, we simply cannot absorb a shift in federal responsibility to states,\u201d said Valerie Davidson, Alaska\u2019s Department of Health and Social Services Commissioner.<\/p>\n

[Q&A: How Medicaid expansion affects Alaskans]<\/a><\/em><\/p>\n

Davidson noted that Alaskans have received too much under Medicaid expansion \u2014 an option under Obama\u2019s Affordable Care Act \u2014 to cut anything without tens of thousands previously uncovered citizens taking the blow.<\/p>\n

In 2015, Gov. Bill Walker had expanded Medicaid to over 30,000 enrollees, via executive order, much to the Republican-led Legislature\u2019s annoyance.<\/p>\n

Alaska\u2019s Medicaid expansion has paid out over $382 million in claims, nearly all of which came from the federal government. The state now opposes a federal rollback of the Affordable Care Act because it can\u2019t afford to take lead, according to officials.<\/p>\n

Alaska is in the early stages of what some state economists predict will be a years-long recession. When the price of oil dropped nearly $80 per barrel in early 2015, the state\u2019s oil-dependent budget gaped open. Legislators in Juneau are currently debating solutions, though rounds of cuts to state services continue.<\/p>\n

Opposition to alternatives <\/strong><\/p>\n

A quartet of U.S. Senators wrote a letter to Senate Majority Leader Mitch McConnell, asking him not to make any hasty decisions with GOP plans to overhaul the ACA. The letter was signed by Rob Portman (R-OH), Shelley Moore Capito (R-WV), Cory Gardner (R-CO) and Lisa Murkowski, R-AK.<\/p>\n

\u201cThe Affordable Care Act is not working for states or the federal government and must be repealed and replaced with a plan that reforms Medicaid and protects individuals and their families over the long term,\u201d the senators wrote. \u201cHowever, the February 10th draft proposal from the House does not meet the test of stability for individuals currently enrolled in the program and we will not support a plan that does not include stability for Medicaid expansion populations or flexibility for states.\u201d<\/p>\n

Governors from four more states proposed the same.<\/p>\n

In a March 16 letter, John Kasich of Ohio, Rick Snyder of Michigan, Brian Sandoval of Nevada and Asa Hutchinson of Arkansas wrote to McConnell and Ryan:<\/p>\n

\u201cUnfortunately the current version of the House bill\u2026provides almost no new flexibility for states, does not ensure the resources necessary to make sure no one is left out, and shifts significant new costs to states.\u201d<\/p>\n

When asked for examples of what constitutes flexibility, Gov. Kasich\u2019s office simply referred the Empire back to the letter.<\/p>\n

Seeking stability? <\/strong><\/p>\n

Why Portman, Capito, Gardner and Murkowski co-wrote a letter together is anyone\u2019s guess. Staffers from each of their offices give little weight to the fact that each senator holds a financial committee assignment. (Murkowski serves on the Appropriations Committee along with Capito, Portman on the Finance Committee, and Gardner on the Budget Committee.)<\/p>\n

More likely, the states simply have financial issues in common.<\/p>\n

When talking about stability, the senators mean two things: keeping the expanded Medicaid class in health care and keeping their state budgets afloat in the process.<\/p>\n

Like Alaska, some of the other states have approaching budget shortfalls and fiscal cliffs.<\/p>\n

With a budget deficit of over $400 million, West Virginia Gov. Jim Justice has said Congress\u2019s Medicaid cuts would lead to a \u201cpublic health emergency.\u201d To balance its budget, the West Virginia Legislature has proposed a $50 million cut to the state\u2019s Medicaid program, part of a larger $150 million cut package.<\/p>\n

Oregon\u2019s budget deficit for the upcoming year totals $1.7 billion, despite the buzz around recreational marijuana tax revenues.<\/p>\n

Colorado has a budget shortfall of $119 million. Marc Williams of Colorado\u2019s DHHS said a Medicaid rollback would produce a huge budget gap. Currently, 1.3 million Coloradoans are covered under the expanded Medicaid, 407,000 of whom are new enrollees.<\/p>\n

\u201cIf we want to maintain the current services to the current level, there would be about a billion dollar shortfall,\u201d Williams explained to the Empire.<\/p>\n

Even states with otherwise bursting budgets are looking out for a bottom line of some kind.<\/p>\n

New Hampshire\u2019s treasury, for example, is as healthy as it\u2019s ever been, but the state\u2019s DHHS budget is facing a $66 million hole, according to DHHS Commissioner Jeffrey Meyers. New Hampshire Gov. Chris Sununu said he won\u2019t support Ryan\u2019s bill, offering the same reasons as the four senators who wrote the letter to McConnell.<\/p>\n

Market exit <\/strong><\/p>\n

Staffers from congressional offices explained that the biggest problem with the ACA has been its effect on the insurance market, and the governors pinpointed the same in their letter. Stabilizing the insurance market should be the \u201cfirst priority,\u201d they wrote.<\/p>\n

\u201cObamacare has destabilized the private health insurance market and set Medicaid on an increasingly unsustainable path for states and the federal government alike,\u201d reads their proposal. \u201cAs the primary regulators of private insurance and significant funders of Medicaid, states need to be equity partners with the federal government in developing and implementing reforms.\u201d<\/p>\n

Simply put, these states want the ability to manage their respective Medicaid programs as needed to keep federal dollars flowing and take some of the strain off insurers.<\/p>\n

In some states, insurers raised individual plan premiums, saying they were unable to make up the costs of increased coverage for high risk patients under ACA Medicaid expansion.<\/p>\n

Opinions differ as to whether insurance companies are truly hurting or if they are just crying wolf. The Brookings Institution published a study back in 2014 claiming the ACA caused premiums to spike. Another study said the exact opposite just two years later.<\/p>\n

The U.S. Department of Health and Human Services estimated that the average silver plan would rise by 22 percent this year.<\/p>\n

Regardless of whether insurers make profits or not, some states have every reason to want to keep them happy and prevent insurers from exiting the marketplace.<\/p>\n

In Alaska, just one individual insurance provider remains: Premera Blue Cross, which received a $55 million subsidy from the state. In Ohio, the number of individual insurers dropped from 18 to 11 in the face of an average 91 percent premium increase as of 2017. Colorado saw similar premium spikes prompting Gardner to say, \u201cThe people of Colorado can\u2019t afford Obamacare.\u201d<\/p>\n

Ryan\u2019s bill would have made premiums rise even more before they dropped slightly in several years, according to the Congressional Budget Office.<\/p>\n

\u201cIn 2018 and 2019, according to CBO and JCT\u2019s estimates, average premiums for single policyholders in the nongroup market would be 15 percent to 20 percent higher under the legislation than under current law,\u201d the report reads. \u201cBy 2026, average premiums for single policyholders in the nongroup market would be roughly 10 percent lower than under current law.\u201d<\/p>\n

Additions were not enough <\/strong><\/p>\n

As conservatives balked on the bill, Ryan added last-minute amendments to address what is deemed as \u201cpersonal responsibility.\u201d<\/p>\n

For example, part of the manager\u2019s amendment added just days before the scheduled House vote, said states could opt to require non-disabled, non-elderly and non-pregnant Medicaid recipients to work in order to receive coverage. Rep. Jodey Arrington (R-Tex.) said this would prevent the program from becoming a \u201cseductive entitlement.\u201d<\/p>\n

Working requirements for benefit recipients, however, are more a political concession than a workable solution to wean Americans off government programs, according to studies.<\/p>\n

\u201cNearly 8 in 10 Medicaid adults are in working families, and most (59 percent) are working themselves without being required to do so as a condition of coverage,\u201d reads a report from the Henry J. Kaiser Family Foundation.<\/p>\n

Those who aren\u2019t working, the study says, report illness, disability, or responsibilities like school and home life as the reason for joblessness. Half of Medicaid recipients in the ACA expansions said the program made it easier to look for work.<\/p>\n

\u201cGiven these data and findings, Medicaid work requirements would have a narrow reach and could negatively affect those who are not working due to disability or caregiving responsibilities if they are not exempted from the requirement,\u201d the study concludes.<\/p>\n

Lobbying efforts from medical proponents underscored what kind of people the working requirements might have cut off from care \u2014 and the kind of support elected officials would lose if they endangered them.<\/p>\n

The American Heart Association mounted a lobbying effort in favor of Medicaid expansion even further through the \u201cExpanding Medicaid Works For America\u201d campaign. The campaign builds on the fact that 53 percent of Medicaid recipients have cardiovascular disease.<\/p>\n

\u201cThe American Heart Association (AHA) opposes policies that reduce access to, or significantly increase the cost of, necessary care for individuals with CVD,\u201d wrote the association. \u201cThe Association also encourages States to accept federal funding to cover low-income adults with incomes up to 138 percent of the federal poverty level as a way of ensuring that these individuals will have affordable access to the health care services they need.\u201d<\/p>\n

Ryan and Republicans \u2013 What next?<\/strong><\/p>\n

Whatever schism exists between moderates and conservatives is likely to grow worse following the bill\u2019s failure.<\/p>\n

Both Ryan and Trump stayed polite after the vote cancellation. Trump said he didn\u2019t blame Ryan for the fiasco, while Ryan thanked the president for his support.<\/p>\n

Despite the manners though, the bill\u2019s failure could set the stage for a coup in the warring GOP. The scripted responses paint a chummy version of Trump and Ryan, with mutual respect on both sides and no blame on either for the ACA overhaul\u2019s flop.<\/p>\n

In private and on airwaves, the tone changes.<\/p>\n

Conservative Fox television show host Jeanine Pirro called for Ryan to step down just a day after the bill was pulled. Other White House sources said Ryan should be blamed for the bill\u2019s failure.<\/p>\n

The Freedom Caucus and hardline Republicans whose voter base in part drove Trump to the presidency have every reason to distrust Ryan to begin with. Ryan butted heads with Trump during the election bid, and in a leaked audio clip said he was \u201cnot going to defend Donald Trump \u2014 not now, not in the future\u201d regarding one of Trump\u2019s tawdrier scandals about fondling women.<\/p>\n

Soon after the cancelled vote, rumors started about who will replace Ryan as chair, including conservative voices like House Freedom Caucus chairman Rep. Mark Meadows (R-NC), former Freedom Caucus chair Rep. Jim Jordan (R-OH), House Majority Leader Kevin McCarthy, and House Appropriations Committee chairman Rep. Rodney Frelinghuysen (R-NJ). Rep. Jordan\u2019s office told the Empire there is nothing to the rumors.<\/p>\n


\n

DJ Summers is a national correspondent and author of The Business of Cannabis, due out in 2018. He can be reached at djsummers100@gmail.com.<\/b><\/p>\n


\n

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