Who Wins, Who Loses in Bill Aimed at Upending Obamacare - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
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
Top Stories RSS Get our newsletter
Order Prints
September 20, 2017 Top Stories
Share
Share
Post
Email

Who Wins, Who Loses in Bill Aimed at Upending Obamacare

Associated Press

WASHINGTON (AP) — The GOP's last-ditch effort to repeal "Obamacare" would redistribute hundreds of billions of dollars in federal financing for insurance coverage, creating winners and losers among individual Americans and states in ways not yet fully clear.

Independent analysts say the latest Senate Republican bill is likely to leave more people uninsured than the Affordable Care Act, and allow states to make changes that raise costs for people with health problems or pre-existing medical conditions.

After closed-door meetings Tuesday, supporters seemed confident but acknowledged they're not sure if the bill can pass. There's only a narrow window for the Senate to act under special budget rules that expire at the end of the month.

The Congressional Budget Office has said it doesn't have time to complete a full analysis of the impact on coverage before the deadline.

The biggest changes would start in 2020 — the next presidential election year. That's a political risk for Republicans, since health care changes often involve unforeseen problems.

A key feature of the legislation from Sens. Lindsey Graham of South Carolina and Bill Cassidy of Louisiana would put the ACA's financing for subsidized private health insurance and Medicaid expansion into a giant pot and redistribute it among states according to new formulas. States could obtain federal waivers allowing them to modify insurance market safeguards for consumers. For example, states could let insurers charge higher premiums for older adults.

The 31 states that expanded Medicaid are likely to see a funding reduction over time, as well as states, like Florida, where many residents received subsidies for private health insurance, said Larry Levitt of the nonpartisan Kaiser Family Foundation.

"Every state has to start from scratch creating its own health insurance program, in some cases with reduced federal funding and in some cases with increased federal funding," Levitt said. "I don't think at this point anybody knows what states are going to do."

Following the framework of previous Republican bills, the new legislation would also limit overall federal financing for Medicaid, which serves more than 70 million low-income people. That feature affects the entire program, not just former President Barack Obama's expansion to cover more low-income adults. It would change the current open-ended nature of Medicaid financing, a move that prompts deep concern from hospitals, doctors, nursing homes, consumer groups, and some state officials.

"The bottom line is most states will experience a reduction in federal funding under the bill," said Caroline Pearson of the consulting firm Avalere Health. "States that expanded Medicaid are likely to see some of the biggest cuts."

Graham says his bill will allow states to take the initiative on health care, designing programs that work best under local conditions. "I believe that most Republicans like the idea of state control of health care rather than Washington, D.C., control," he said. "We've come upon an idea that is uniquely Republican."

But Sen. Susan Collins, R-Maine, sees problems. "It seems that it has many of the same flaws as the bill that we rejected previously," said Collins, one of three GOP senators whose opposition derailed the last Republican legislation.

Here's a look at some winners and losers under the bill:

Winners — People who don't believe the government should require individuals to purchase a costly private service like health insurance. The bill would repeal "Obamacare's" unpopular requirements for individuals to have coverage and for larger employers to offer coverage. The trade-off is that without such a legal requirement, more people are likely to be uninsured. And an accident or unexpected illness can make that a costly decision.

Losers — People with health problems or with pre-existing medical conditions could be charged more if the state they live in obtains a waiver from current requirements that forbid insurers from charging higher premiums based on health status. States could also seek waivers from the current requirement that insurers cover 10 basic kinds of services, such as maternity and childbirth, or mental health and substance abuse treatment.

Winners — Medical device manufacturers. The bill would repeal an ACA tax on the industry. But it would leave in place Obama's tax increases on upper-income individuals, a feature that may cause problems among some conservatives.

Losers — States that expanded Medicaid, including 17 with Republican governors. The more generous federal match for the expansion would be phased out, and some of the money would be redistributed to states that did not expand their programs.

Winners — People who use tax-sheltered health savings accounts for health care expenses. Contribution limits would be raised and consumers could use their accounts to pay insurance premiums, not just out-of-pocket costs such as copays and deductibles.

Older

A last, last chance: Republicans strain for Obamacare repeal

Newer

A Popular Mistake when Moving House: Top Removals Comments

Advisor News

  • IRI pitches retirement agenda to Jeffries as democrats shape affordability platform
  • Help child-free clients plan for their later years
  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
More Advisor News

Annuity News

  • Guidance, bulletin or reg? NAIC debates form of annuity illustration update
  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
More Annuity News

Health/Employee Benefits News

  • Ohio State University Reports Findings in Managed Care (The Association of Medical Periodicity Adherence and Early Preventive Dental Care With Subsequent Dental Utilization Among Medicaid-insured Ohio Children): Managed Care
  • Data on Managed Care Reported by Researchers at University of Washington (Pediatric Dental Providers’ Experiences With Parent Refusal of Radiographic Imaging): Managed Care
  • Data from University of Georgia Provide New Insights into Mental Health (Prior Authorization Requirements in Medicare Advantage and County Social Vulnerability): Mental Health
  • THE HISTORY OF HOMECARE FRAUD: NGO'S, BUREAUCRATS, AND LABOR UNIONS UNDERMINED MEDICAID FRAUD PREVENTION
  • New York approves increase for health insurance in 2027
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Agam Capital Advises JAB Insurance on Completing the Acquisition and Successful Rehabilitation of Columbian Financial Group
  • Former Lawrence County deputy indicted in alleged life insurance fraud scheme
  • Life insurance sales rise across all product lines in Q2, Wink reports
  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
Sponsor
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

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
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.