Trump’s overhaul of Obamacare spells uncertain future

Jan. 28--VICTORVILLE -- President Donald Trump's signing of an executive order that would ease regulations created under the Affordable Care Act has insurance companies across the nation and High Desert bracing for an uncertain future.

Republican senators unveiled the first Obamacare replacement plan on Monday, which highlights several proposals, including keeping all the tax increases included in Obamacare.

Casey Armstrong, president/owner of Armstrong Fairway Insurance Agency of Victorville, told the Daily Press agents from across the industry are calling her office to see how they are responding to Trump's actions.

"It's really business as usual at the office for now," Armstrong said. "Open enrollment still ends on January 31 and absolutely nothing has changed -- yet."

Armstrong said many insurance carriers are in a quandary because of the limited understanding of the ACA, coupled with the executive order not describing specific federal rules to be softened or lifted.

Armstrong said she plans to meet with House and Senate leadership next month to see how they could "create a sustainable insurance marketplace" that controls the cost while keeping "private insurance intact."

"California was one of the first states to create its own exchange for this very reason," Armstrong said. "We have the framework to keep the exchanges. We will, no doubt."

Trump's signing on Jan. 20 directed agencies to grant relief to those affected by the massive 2010 healthcare law that includes patients, insurance providers, medical facilities, physicians, pharmaceutical companies, states and others.

Trump's first proposal put forward last week would give states three options. For California, it includes the state keeping its exchange, Covered CA, and still having access to federal subsidies.

Option two would give the state federal funding promised under the ACA to create Health Savings Accounts for low-income residents. The final option is to allow California to reject any federal assistance.

Armstrong believes any efforts to repeal tax credits should be delayed until 2019 to allow a replacement plan be put into place to prevent a destabilization of the market.

Many say Trump's plan to overhaul the healthcare system would spell disaster, with Sen. Charles Schumer (D-N.Y.) telling USA Today it would be nearly impossible to keep the benefits of the ACA without keeping the whole thing.

"Millions of Americans would be kicked off their health plans, out-of-pocket costs and deductibles for consumers would skyrocket, employer-based coverage for working families would be disrupted, and protections for people with pre-existing conditions, such as cancer, would be gutted," Schumer said.

However, under Obamacare premiums already have soared this year in many states, with residents of Arizona and other states seeing their insurance costs rise more than 100 percent.

And ever since the ACA took effect, many citizens have seen the quality of their health plans decrease while deductibles and out-of-pocket expenses have soared.

Trump's ruling seems to give agencies the option of eliminating many of ACA taxes and requirements, but with some of them part of the law, it's unclear how much authority the new ruling will have.

"I am working closely with my association in developing ideas and make sure that this 'replacement' is well thought out," Armstrong said. "One of the problems with the ACA is that it was shoved through without everyone understanding even the half of what was put in that bill."

Armstrong told the Daily Press that Gov. Jerry Brown recently admitted a $1.9 billion accounting error with regards to Medi-Cal, an announcement that was "overshadowed by the Inauguration" and a "huge error" that puts California's deficit "even larger than predicted."

"Make no mistake, California is going to fight to keep Covered CA going," Armstrong said. "Whether or not we have carriers that will be left in the Marketplace is yet to be seen."

Rene Ray De La Cruz may be reached at 760-951-6227, RDeLa [email protected] or on Twitter @DP_ReneDeLaCruz.

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