Shortly after the passage of the American Health Care Act (AHCA) a couple months ago, I read a poll that asked the question, “Will the repeal of Obamacare affect you?” Sixty-percent of the respondents shared that revoking the Affordable Care Act (aka Obamacare) would not have an impact on them. However, President Obama’s signature legislation was broad and touched every American. It’s also complex as many people who study these issues for a living can attest.
No one likes to pay for or think about insurance until you need it. However, if you are wondering whether the bill might have an impact on you, here are a few topics to consider.
Pre-existing conditions – As we age, pre-existing conditions become a greater concern. These concerns are not always catastrophic illnesses like cancer or Alzheimer’s. Many people have or will have chronic conditions – hypertension, diabetes and high cholesterol – that fall under the term “pre-existing.” Questions you might ask as you try to understand the AHCA’s impact should include – “what, if any, pre-existing conditions are covered and if so, will you be able to afford the premium?”
Affordable plans – Health insurers price their products by spreading the cost of insurance over a large pool of customers. Older customers utilize health services more than younger ones, and seniors cost more to insure. Under the American Health Care Act, the nonpartisan Congressional Budget Office estimates that a health plan will eventually cost 10% less than it would have cost under Obamacare. However, over the next couple of years, premiums will spike – 15% to 20% more than they are today. Seniors on fixed incomes may find that they cannot afford the higher costs which may result in many older adults becoming uninsured. As these seniors are priced out of insurance, the remaining customers in the insured pool are younger and healthier which allows insurers to lower premiums.
Essential benefits – Obamacare required employers and the marketplace to offer insurance that covered ten health services, from ambulatory care (think of your doctor visits) to prescription drugs and preventative services. AHCA will allow states to waive the requirement on employers to provide insurance plans that address the essential benefits. Given rising health care premiums, employers could decide to not offer health insurance or shift a greater burden of the costs to employees.
Medicare – AHCA would repeal the additional 0.9 percent payroll tax on higher-income workers. The removal of this Obamacare provision would reduce the Hospital Insurance Trust fund by $117.3 billion over the next ten years. The result would mean that Medicare will run out of money four years earlier than under the Affordable Care Act.
There are more issues to explore including the cut in Medicaid expansion that will affect older adults. In thinking about whether AHCA affects us today, we must also keep in mind that whatever Congress decides will also affect us when we are in our eighties which is when we will have our highest health care demands. If you want more information on how AHCA might impact you, go to this website link from the nonpartisan Congressional Budget Office.