EDITORIAL: Promises meet harsh reality in GOP's health care plan - 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 9, 2017 Newswires
Share
Share
Post
Email

EDITORIAL: Promises meet harsh reality in GOP’s health care plan

Star Tribune (Minneapolis, MN)

March 09--For seven years, Republicans repeatedly vowed to replace the Affordable Care Act with a plan that would lower health care costs, improve coverage and expand choice for every American. Now that they've had to detail what that plan looks like -- the newly introduced American Health Care Act (AHCA) -- voters should judge them on how well they delivered.

Have congressional Republicans, and by extension President Trump, addressed the problems that consumers care about? Or does their plan prioritize a political agenda of cutting taxes for wealthy special interests and weakening public health programs such as Medicaid?

Critical information is still lacking for the new Republican alternative to former President Barack Obama's Affordable Care Act. The legislation still has yet to be "scored" by the respected, nonpartisan Congressional Budget Office, meaning that its overall cost, impact on the national deficit and effect on the uninsured rate are unknown. Without this information, it is reckless to try to rush the AHCA through Congress.

Still, there are enough details known about the AHCA to draw some disturbing conclusions. While the plan retains some of the Obama law's popular components, such as preexisting condition protections and coverage for young adults on parents' plans, the AHCA falls well short of meeting the high expectations created by Republicans. Several points of concern fairly leap out during a review of the bill:

-- It comes up short on innovative prescriptions to rein in the cost of medical care, a critical driver of insurance costs.

-- The flat, age-adjusted tax credit assistance of $2,000 to $4,000 a year will likely reduce the amount of aid many people currently get to buy coverage under Obamacare.

-- It would stick many older Americans with higher coverage costs. The bill allows insurers to charge older people who buy insurance on their own -- such as retirees who haven't hit the Medicare eligibility age of 65 -- up to five times more than younger people for similar coverage. The bill's tax credit assistance for this age group is not a guaranteed five-fold increase.

-- The bill calls for a sweeping overhaul of Medicaid funding, which could dramatically reduce the amount of federal funding for a program that covers millions of low-income people and pays for much of the nation's nursing home care. In fact, Medicaid cuts appear to be the main way the GOP plans to finance the AHCA. The bill would repeal key taxes levied by the Obama legislation on high-income Americans and on some medical industry groups to pay for reforms.

Those watching the debate unfold ought to do some personal homework as they assess the GOP plan. A call to an insurance broker would be helpful for those who buy coverage this way. A new interactive county-by-county map from the Kaiser Family Foundation allows people to compare the financial assistance they received under the Obama reforms and what aid would be likely under the Republican plan. In general, older and poorer Minnesotans get more assistance under Obamacare. Younger and wealthier Minnesotans would fare better under the Republican plan.

This trade-off illustrates a key point about health care. No plan can cover everything for everyone at a price everyone agrees with. There are always trade-offs. The AHCA's flaws not only reflect this hard reality but raise serious questions about whether the bill is intended to serve consumers or the political aims of the Republican Party.

___

(c)2017 the Star Tribune (Minneapolis)

Visit the Star Tribune (Minneapolis) at www.startribune.com

Distributed by Tribune Content Agency, LLC.

Older

EDITORIAL: Why would anyone go from Obamacare to ‘Don’t Care’?

Newer

Tom Emmer, Erik Paulsen, Jason Lewis praise House GOP health care plan

Advisor News

  • Semi-retirement: helping clients balance flexibility with financial security
  • The 6X Formula for leveraging content marketing with AI
  • When a home becomes difficult to insure, the plan changes
  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
More Advisor News

Annuity News

  • Athene CEO criticizes offshore reinsurance, risk-taking by competitors
  • DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
  • John Hancock launches new fixed indexed annuity suite
  • Annuities to play a larger role in workplace retirement plans
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity News

Health/Employee Benefits News

  • Data on Managed Care Described by Researchers at Johns Hopkins University (Locating the Gender Payment Gap Among Recent Cardiothoracic Surgery Graduates: A Bottom-up Analysis of Medicare Payments): Managed Care
  • Medicare Advantage stays in Coos, Carroll counties after Ayotte recruits insurer
  • iA Financial Group Increases Core ROE†† Target¹ to 18.5%+ in 2028
  • Franklin County Hiring Juvenile Probation Officer
  • 'That's Annoying': Incoming Dem Rep Pans 'Terrible' Obamacare Plans Offered to Members of Congress
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Fubon Insurance Vietnam Co., Ltd.
  • Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
  • Military Briefs: November 12-18
  • Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
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.