American Health Care Act Of 2017
Mr. Speaker, I include in the Record a letter from AARP which makes clear health care will be sabotaged under this bill, and healthcare costs for older Americans will ``dramatically increase.'' [From the House Democratic Leader's Press…
Mr. Speaker, I include in the Record a letter from AARP which makes clear
health care will be sabotaged under this bill, and healthcare costs for older Americans will ``dramatically increase.''
[From the House Democratic Leader's Press Office, May 3, 2017]
AARP Press Release: New Changes to the AHCA Makes a Bad Bill Worse!
Dear Representative: Older Americans care deeply about
access to and affordability of health care. With the addition
of the Upton Amendment, as reported, we once again write to
share our opposition to the American Health Care Act (AHCA)
and urge you to vote NO. Changes under consideration that
would allow states to waive important consumer protections--
allowing insurance companies to once again charge Americans
with pre-existing conditions more because they've had cancer,
diabetes or heart disease--would make a bad bill even worse.
This would be devastating for the 25 million Americans 50-64
who have a deniable preexisting condition. The Upton
amendment would do little to reduce the massive premium
increases for those with pre-existing conditions.
Throughout consideration of the AHCA, we have been
expressing serious concerns about the impact that this
legislation will have on older Americans. The Congressional
Budget Office (CBO)'s last estimate further demonstrates the
harmful impact of this bill on older Americans and some of
our most vulnerable. Specifically, the American Health Care
Act will weaken the fiscal sustainability of Medicare;
dramatically increase premium and out-of-pocket costs for 50-
64 year olds purchasing coverage on the individual insurance
market; allow insurance companies to once again discriminate
against those with pre-existing conditions; substantially
increase the number of Americans without insurance; and put
at risk millions of children and adults with disabilities and
poor seniors who depend on the Medicaid program to access
long-term services and supports and other benefits.
Our members and others 50 years of age and older care
deeply about health care and want to know where their elected
leaders stand. Recognizing the importance of the upcoming
vote on the American Health Care Act, AARP intends to inform
our members, and others over age 50, how their elected
officials voted. We'll communicate the results of the vote in
our widely-circulated publications, in e-mail alerts, in our
online channels, and through the media. Again, we urge all
Representatives to vote NO on the American Health Care Act in
its current form.
Medicare
The American Health Care Act repeals provisions in current
law that have strengthened Medicare's fiscal outlook,
specifically, the repeal of the additional 0.9 percent
payroll tax on higher-income workers. Repealing this
provision would remove billions from the Hospital Insurance
trust fund, hasten the insolvency of Medicare, and diminish
Medicare's ability to pay for services in the future.
Individual Private Insurance Market
Currently, about 25 million Americans age 50-64 have a pre-
existing condition, about 6.1 million purchase insurance in
the non-group market, and nearly 3.2 million are currently
eligible to receive subsidies for health insurance coverage
through either the federal health benefits exchange or a
state-based exchange (exchange). Since passage of the ACA,
the number of 50-64 year old Americans who are uninsured has
dropped by half. We are deeply concerned that the AHCA would
be a significant step backwards and result in millions of
older Americans who cannot afford their health care,
including many simply losing their health care. Based on CBO
estimates, approximately 14 million Americans will lose
coverage next year, while a total of 24 million Americans
would lose coverage over the next 10 years.
Affordability of both premiums and cost-sharing is critical
to older Americans and their ability to obtain and access
health care. A typical 50-64 year old seeking coverage
through an exchange has a median annual income of under
$25,000 and already pays significant out-of-pocket costs for
health care. We have serious concerns--reinforced by the CBO
estimate--that the bill under consideration will dramatically
increase health care costs for 50-64 year olds who purchase
health care through an exchange due both to the changes in
age rating from 3:1 (already a compromise that requires
uninsured older Americans to pay three times more than
younger individuals) to 5:1 (or more) and reductions in
current tax credits for older Americans. CBO concluded that
the bill will substantially raise premiums for older people
and force many into lower quality plans.
Age rating plus reduced tax credits equal an unaffordable
age tax. Our previous estimates on the age-rating change
showed that premiums for current coverage could increase by
up to $3,200 for a 64 year old. In addition, the bill reduced
the tax credits available for older Americans to help
purchase insurance. We estimate that the bill's changes to
current law's tax credits alone could increase premium costs
by more than $5,800 for a 64-year old earning $15,000.
Overall, both the bill's tax credit changes and 5:1 age
rating would result in skyrocketing cost increases for older
Americans. In their analysis, CBO found that a 64 year old
earning $26,500 a year would see their premiums increase by
$12,900--758 percent--from $1,700 to $14,600 a year.
Current law prohibits insurance companies from
discriminating against individuals due to a pre-existing
condition. The bill would repeal pre-existing condition
protections and would once again allow insurance companies to
charge Americans more--we estimate up to $25,000 more--due to
a pre-existing condition. As a result, the 4o percent of 50-
to 64-year-olds (about 25 million people) who have a deniable
preexisting condition risk losing access to affordable
coverage. The Upton Amendment, which would add funds to
address the impact of premium increases for those with pre-
existing conditions, would do little to mitigate the massive
premium increase for some of the most vulnerable Americans.
AARP strongly opposes any weakening of the law's pre-existing
condition protections which benefit millions of Americans.
Medicaid and Long-Term Services and Supports
AARP opposes the provisions of the American Health Care Act
that create a per capita cap financing structure in the
Medicaid program. We are concerned that these provisions
could endanger the health, safety, and care of millions of
individuals who depend on the essential services provided
through Medicaid. CBO found that the bill would cut Medicaid
funding by $880 billion over 2017-2026, about 25 percent less
than what it projects under current law. Medicaid is a vital
safety net and intergenerational lifeline for millions of
individuals, including over 17.4 million low-income seniors
and children and adults with disabilities who rely on the
program for critical health care and long-term services and
supports (LTSS, i.e., assistance with daily activities such
as eating, bathing, dressing, managing medications, and
transportation). Older adults and people with disabilities
now account for over sixty percent of Medicaid spending, and
cuts of this magnitude will result in loss of benefits and
services for this vulnerable population.
Of these 17.4 million individuals: 6.9 million are ages 65
and older (which equals more than 1 in every 7 elderly
Medicare beneficiaries); 10.5 million are children and adults
living with disabilities; and about 10.8 million are so poor
or have a disability that they qualify for both Medicare and
Medicaid (dual eligibles). Dual eligibles account for almost
33 percent of Medicaid spending. While they comprise a
relatively small percentage of enrollees, they account for a
disproportionate share of total Medicare and Medicaid
spending.
Individuals with disabilities of all ages and older adults
rely on critical Medicaid services, including home and
community-based services (HCBS) for assistance with daily
activities such as eating, bathing, dressing, and home
modifications; nursing home care; and other benefits such as
hearing aids and eyeglasses.
In providing a fixed amount of federal funding per person,
this approach to financing would likely result in
overwhelming cost shifts to states, state taxpayers, and
families unable to shoulder the costs of care without
sufficient federal support. This would result in cuts to
program eligibility, services, or both--ultimately harming
some of our nation's most vulnerable citizens.
Mr. Speaker, I know in these polarized times we often forget our actual connections to each other, but we are all connected. A sick, uninsured employee affects the bottom line of a small business. Uncompensated care in the emergency room, we all pay the bill. When a child from an uninsured family goes to school with an undiagnosed virus, not only does it impact his or her ability to learn, it impacts other kids and puts them at risk. We are all connected.
As Martin Luther King so powerfully said: ``We may have come over on different ships, but we are all in the same boat now.''
Mr. Speaker, it is time we start rowing together. Unfortunately, this bill fails to recognize this. It still fails that we are connected, and, instead of bringing us together, this simply divides us by providing less coverage, imposing an age tax, forcing people to pay more, and stripping key protections.
Mr. Speaker, I urge all my colleagues to vote ``no'' on H.R. 1628.