EDITORIAL: Unexpected source says Obamacare isn’t broken — the Trump administration
It has long been clear that it is the uncertainty around the future of the ACA, which
Now there's a new source of data concluding that the ACA is working as intended, and it comes from the Trump administration itself.
In short, the federal
"The transitional reinsurance and permanent risk adjustment programs functioned smoothly for the 2016 benefit year, as the Patient Protection and Affordable Care Act compliant market continued to grow," the report said.
Transitional reinsurance and the permanent risk adjustment are portions of the ACA that help ensure insurance companies enroll high-cost patients by distributing money from plans with a lot of healthy enrollees to plans with too few and by covering some of the costs of patients with very high health care needs.
"Both the transitional reinsurance program and the permanent risk adjustment program are working as intended in compensating plans that enrolled higher-risk individuals, thereby protecting issuers against adverse selection within a market within a state and supporting them in offering products that serve all types of consumers," the report said.
Under the ACA, each enrollee is issued a risk score, based on age, sex and health conditions. In its report, CMS said there were many reasons to expect risk scores to rise in 2016, primarily because the longer a person is enrolled in a health plan, they are likely to be diagnosed with additional health conditions, resulting in more paid health claims. This didn't happen. Instead, risk scores "were stable" in the individual market.
There is no death spiral. The ACA is not imploding.
This does not mean the law doesn't need to be fixed. For example, costs are rising too fast, and the law's individual mandate has prompted too many healthy people to decide it's easier to pay the penalty rather than buy health insurance.
But fixing these problems doesn't require repealing the ACA, especially if it would be replaced with a plan that would cost Americans more for less coverage, put rural hospitals at risk of closing and gut the Medicaid program, as a bill currently under consideration in the
For these reasons, Sen.
Perhaps because of the CMS report, but more likely because of public outcry about the
This is a much more prudent path, based on politics and the real status of the Affordable Care Act.
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(c)2017 the Bangor Daily News (Bangor, Maine)
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