EDITORIAL: As Obamacare teeters: Evaluating a GOP fix - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
March 8, 2017 Newswires
Share
Share
Post
Email

EDITORIAL: As Obamacare teeters: Evaluating a GOP fix

Chicago Tribune (IL)

March 08--House Republicans delivered a long-promised Obamacare replacement Monday night. It's a strong bid to replace an increasingly feeble law. President Donald Trump tweeted his support for the "wonderful new" bill. Some other Republicans are in open revolt.

Let's slow down here. There are some huge blanks still to be filled in: Will people lose coverage because they won't be able to afford it as premium subsidies shrink, as critics claim? Will the plan cost the federal government more or less than an increasingly shaky Obamacare would? Health economists are busy at their calculators, so answers to those and other key questions should be forthcoming soon.

But that's only part of the way Americans should evaluate the pros and cons of this proposal. Many Americans now have Obamacare coverage in name only -- that is, their insurance is expensive and almost useless because of explosively high deductibles or because the networks of doctors and hospitals is too narrowly drawn. Insurers are fleeing the program. And Americans are livid about higher premiums and deductibles.

Put another way: America's choice isn't between an ideal vision of Obamacare and this or some other replacement. Obamacare is coming apart at the seams.

So what does the GOP proposal do to fix that?

--It frees American businesses and individuals from the mandate to buy or provide coverage or pay penalties. In its place, more personal responsibility: Those who don't buy insurance, or who let their coverage lapse, can be charged more to buy later -- a flat 30 percent late enrollment surcharge. That's a smarter and fairer system than letting people sign up for no added charge after they're sick.

--Also jettisoned would be the metal plans (gold, silver, bronze). In their place, more flexibility for insurers to offer different cost-sharing packages (including, we hope, more affordable copays and deductibles) to consumers. That could help reduce costs for some Americans.

--The GOP plan preserves some of Obamacare's most popular features. It allows parents to keep their children on policies until age 26. It prohibits insurers from denying coverage based on pre-existing conditions. Good.

--One of the biggest battles is shaping up over the millions of people who have gained coverage via Obamacare's Medicaid expansion, including some 650,000 new beneficiaries in Illinois. Generous Obamacare federal assistance enticed Illinois and many other states to massively expand their rolls. The new GOP plan phases out that increased federal assistance in 2020. After that, states could continue to provide expanded coverage, but presumably would be on the hook for substantially more of the cost. Some GOP leaders fear Republicans will be blamed if millions lose Medicaid coverage. But we think lawmakers in Springfield and elsewhere should be motivated to start reining in Medicaid costs.

This Republican plan -- titled the American Health Care Act -- isn't a done deal. Far from it. It's already taking flak not just from Democrats who oppose repeal, but also fusillades of friendly fire from Republican conservatives who want a complete repeal of Obamacare.

"This is not the Obamacare repeal bill we've been waiting for. It is a missed opportunity and a step in the wrong direction," said Republican Sen. Mike Lee of Utah on Tuesday. His colleague Sen. Rand Paul, R-Ky., has derided this plan as "Obamacare Lite!" Ouch.

Democrats, meanwhile, said the plan would force millions of Americans to pay more for less care. That strikes us as a premature judgment: This plan has so many moving parts that bold predictions are little more than conjecture. The Democrats want to defend their president's signature legislation. They know that, fairly or not, millions of Americans are nervous about the prospects of losing health insurance.

But as noted, the alternative to the Republican plan is not to preserve Obamacare as enacted in 2010. The health coverage scheme that law established is collapsing.

As the debate continues, many Americans will compare their current coverage and subsidies and decide for themselves if they would be better or worse off under the Republican plan. Let's see whether insurers say this plan would let them craft policies that people want and can afford.

For years Republicans have told voters that, given the chance, they would replace Obamacare with a more affordable, less onerous system. Their opening bid moves in that direction. Let the tussle to improve and pass it begin.

Join the discussion on Twitter @Trib_Ed_Board and on Facebook.

___

(c)2017 the Chicago Tribune

Visit the Chicago Tribune at www.chicagotribune.com

Distributed by Tribune Content Agency, LLC.

Older

Sen. Shaheen on House Republican Leadership’s Repeal Bill: A Disaster for Healthcare Coverage in New Hampshire and a Devastating Blow to our Efforts…

Newer

Ohio Republicans Can’t Get on Same Page For Affordable Care Act Repeal

Advisor News

  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • Open enrollment is now for 2027 health insurance coverage in Illinois: What to know
  • Idaho insurance director details $13M school trust collapse
  • Insurance program's collapse detailed at ISBA conference
  • Boeing retirees ‘shocked’ by 400% jump in health insurance premiums
  • MEDICAID PAYMENT TRANSPARENCY RULES: STATE REPORTING REQUIREMENTS AND LIMITATIONS
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and Its Subsidiary
  • National Life Group Approves $23 Million Dividends for 2027
  • Milliman’s proposed $15.5 million settlement puts life insurance underwriting data in focus
  • Brighthouse Financial Announces Third Quarter 2026 Results
  • Prudential earnings dip as Japan sales suspension offsets U.S. growth
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.