EDITORIAL: Here we go again: GOP bill replacing ACA is about budget cuts, not reform
This and other structural problems have left many smaller states worrying their health exchange programs may be a year or two from "death spirals," in which the insured disproportionately includes the very sick, driving up the cost of premiums and leading more healthy insured to drop coverage. This prospect in turn has led more and more insurers to quit local and state markets. This year, one-third of the nation's counties and one-fifth of Obamacare's enrollees had only one insurer on their health exchanges. This is not what success looks like.
With the
The Graham-Cassidy bill's most interesting idea is that states should be allowed to experiment with health care outside Obamacare's strictures. In a vacuum, this sounds promising. But in this case, states would face disincentives to innovate because of the risks associated with experimentation, starting with the huge financial downside. While federal block grants would be provided to states, Graham-Cassidy would eliminate mandatory Obamacare funding for insurance subsidies for lower- and middle-income families and would end the expansion of Medicaid allowed under the ACA. These grants, which states would need to match to a degree with their own payments, could be used to fund high-risk pools -- stabilizing the insurance market, at least in theory -- or to subsidize insurance for poor households. But they couldn't come close to covering the range of services available under the ACA even in states that balked at expanding Medicaid.
It's no wonder then that Sen.
If the bill is enacted, the likely result will be bare-bones programs in most states that both provide less coverage than residents have under Obamacare and cost so much more that millions decline insurance. Given that a new
Unless, that is, not just individual states but America as a whole breaks out of the shackles of a health-care system that is riddled with redundancy and bureaucracy and starts from scratch. If other nations have built better, cheaper health systems -- and they have, they have -- then
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