AHCA FACT VS. FICTION

May 4, 2017

AHCA FACT VS. FICTION

FICTION: Under the AHCA, 24 million people will lose their health insurance.

FACT: The AHCA does what Obamacare failed to do, which is provide Americans with the freedom to choose when it comes to their health care. Choice is the operative word here – one that was absent in the world of Obamacare’s big-government mandates. Obamacare is in a death spiral, and millions of Americans will lose their care if Congress does not take action. This death spiral is causing insurers to cease offering plans on the exchanges. In 2017 33% of counties only have one insurer on their exchange and 70% of counties have 2 or fewer insurers. Coverage will not just be unaffordable without replacing Obamacare; it will be unavailable.

“At the outset, it’s because some consumers would choose not to buy insurance if they’re not penalized for lacking it. ‘CBO and [the Joint Committee on Taxation] estimate that, in 2018, 14 million more people would be uninsured under the legislation than under current law. Most of that increase would stem from repealing the penalties associated with the individual mandate,’ the report reads.” (Chris Deaton, “The CBO Didn’t Say Anything About 24 Million ‘Losing’ Insurance,” The Weekly Standard, 3/15/17)
“These 14 million people will not, despite what you’ve read, ‘lose coverage.’ For the most part, CBO says, they ‘will choose not to have insurance because they chose to be covered by insurance under current law only to avoid paying penalties’ [emphasis added].” (Doug Badger, “CBO’s Alternate Facts About Obamacare,” National Review, 3/16/17)

FICTION: The MacArthur Amendment does not cover people with pre-existing conditions and many will be priced out of coverage.

FACT: The MacArthur Amendment maintains existing law that prevents people from being charged based on their health status. Moreover, states may only obtain a limited waiver from the current law if they have set up risk-sharing or reinsurance mechanisms for people in their respective states. States that apply and obtain a limited waiver will be given $8 billion over the next 5 years toward their risk-sharing programs. People with pre-existing conditions who live in a state that obtains a limited waiver and have maintained continuous coverage cannot be charged more.

“But the latest compromise between conservatives and centrists doesn’t repeal guaranteed issue or community rating. It keeps these regulations as the default baseline, and states could apply for a federal waiver if they want to pursue other regulatory relief.” (Editorial, “Pre-Existing Confusion,” Wall Street Journal, 5/2/17)
“High-risk pools are a fairer and more equitable solution to this social problem, rather than hiding the cost by forcing other people to pay premiums that are artificially higher than the value of the product.” (Editorial, “Pre-Existing Confusion,” Wall Street Journal, 5/2/17)
“Liberals are inflating the pre-existing conditions panic with images of patients pushed out to sea on ice floes, but the GOP plan will ensure everyone can get the care they need.” (Editorial, “Pre-Existing Confusion,” Wall Street Journal, 5/2/17)

FICTION: Seniors would see a major increase in health insurance costs under the AHCA.

FACT: Obamacare discouraged young people from purchasing insurance by charging them disproportionately more for coverage, causing health insurance costs to increase for everyone, including seniors. Cost would be reduced for seniors by the AHCA in three ways:

By lowering costs, young people will be more inclined to obtain coverage, thereby improving the quality of the risk pools.

The AHCA will provide states with more flexibility to approve plans that would meet the needs of seniors without unnecessary government mandated benefits.

The AHCA also provides additional funds to states to reduce premiums and out-of-pocket costs for seniors.

FICTION: The AHCA would slash Medicaid spending and force the most vulnerable in society out of the program.

FACT: Medicaid is a critical program, but rather than using the current one-size-fits-all approach, this plan would give states flexibility in how Medicaid funds are spent. It would also require states to provide required services to the most vulnerable, specifically disabled individuals and the elderly who are mandatory populations under current law.

“The AHCA, in fact, could be the most transformative entitlement reform in decades. It would begin to turn Medicaid into a program that would require states to be partners in managing spending to make sure the dollars cover as many services as possible and that those with the greatest need are getting the most help—the complete opposite of the current Medicaid incentives. Under Obamacare, states have a strong incentive to sign up able-bodied single adults for Medicaid, while people who are much needier and with much lower incomes linger on waiting lists.” (Grace-Marie Turner, “House repeal and replace contains important conservative reforms,”Galen Institute, 3/15/17)

FICTION: The bill gives a tax break to the wealthy.

FACT: Obamacare has been a burden on our economy and medical innovation for too long. This bill will provide a massive tax cut for all Americans. The AHCA will rollback the Obamacare taxes by the tune of nearly $1 trillion. This includes taxes on medical devices, wages, health care contributions, health savings accounts, prescription drugs and over the counter medicine.

FICTION: The bill will cut off access to women’s’ health care by prohibiting funding of Planned Parenthood.

FACT: The AHCA actually expands options for women’s health services by putting federal money into federal community health centers. There are over 20 times more Federally Qualified Health Care Service Sites than there are Planned Parenthood Centers, meaning that the options for care far wider spread.