Skip to content Skip to footer
|

GOP Obamacare Replacement Plan Calls for Higher Costs and More Poor People Dying

The CARE Act is a return to the days of higher insurance premiums and less coverage.

Sen. Orrin Hatch of Utah speaking at CPAC 2011 in Washington, DC. Along with Senators Richard Burr and Tom Coburn, Hatch unveiled a replacement plan for the Affordable Care Act as part of the latest GOP attempt to repeal the act. (Photo: Gage Skidmore)

The House of Representatives are planning to vote to repeal the Affordable Care Act. This will be the first time the new Congress has taken up the measure, and the 60th time the Republican-led House has attempted to do so over the last four years. Even if it gets to a vote in the Republican majority Senate, it will inevitably be vetoed.

The same day it was announced that the House planned another repeal vote, Senators Richard Burr (R-N.C.), Tom Coburn, M.D. (R-Okla.), and Orrin Hatch (R-Utah) unveiled the Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act. The press release from the Senate Committee on Finance, of which Senator Hatch is the chairman, describes the CARE Act as “a legislative plan that repeals Obamacare and then replaces it with common-sense, patient-centered reforms that reduce health care costs and increases access to affordable, high-quality care.”

If that sounds a lot like the Affordable Care Act, well, you’re paying attention.

As with all things, it’s the details that matter – and the details are scarce. The two page proposal is filled with talking points. First step, of course, is to repeal the ACA. Yet, they include a lot of the popular aspects of the ACA, such as not being denied coverage for preexisting conditions, continuing health coverage for dependents up to age 26, and prohibiting lifetime limits on coverage. However, if you read further you will see that the plan is nothing more than a return to the days before the ACA.

The proposal allows states to opt out of the continuous coverage for dependents, as well as other provisions that limit how much more insurance companies can charge older individuals. It has replaced the tax subsidy currently available with a refundable tax credit, meaning that people would have to pay full price for their premium and get a refund on their tax return. They are increasing the income level to qualify for this tax credit, which means that fewer people would qualify for Medicaid coverage. As for the Medicaid coverage, they would lower the income rate of eligibility and have a capped amount as to how much each state could spend on the program.

The CARE Act will not allow people to be denied coverage for preexisting conditions but it does not say these individuals cannot be charged more. In fact, the act would reestablish high risk pools for “catastrophic coverage” and health savings accounts. Under the ACA, both of these no longer exist because all plans must have basic coverage and no one can be denied or charged more for a preexisting condition.

Most importantly, under the CARE Act, no employer or individual will be required to purchase insurance if they don’t want to.

In short, the CARE Act is a return to the days of higher insurance premiums and less coverage. Without the employer and individual mandates, people who cannot afford insurance will once again be without options. They admit that their plan has not yet been scored by the Congressional Budget Office, but a think tank called the Center for Health Economy has issued a report that says it will make health insurance more affordable. The Center for Health Economy is a think tank that was started last year and is headed by Republican policy analyst Douglas Holtz-Eakin. It is funded by the American Action Network. The AAN is a political action committee that advocates for “center-right politics”. It has spent hundreds of thousands of dollars on “anti-Obamacare” political messages during campaigns.

These factors should be considered when hearing any “analyses” done about the Republican proposal.

Republicans have already begun their PR campaign for the plan. Last week, an op-ed was published in the Washington Post by a “resident scholar” at another conservative think tank. He set the stage by arguing that less money should be spent by government on health care and that the market should provide options for those who could afford it. He admits that by repealing the ACA, more people would go without coverage and many, very likely, will die. However, as Michael Strain argues, this is an acceptable risk because, quite frankly, we are all going to die anyway and when there are limited resources, tough choices have to be made.

“As with speed limits, gun laws, agency regulations and many other policies, including Obamacare, the shape of future health-care policy will require trade-offs. There are only so many resources, so choices between directing them to health care and allowing them to flow to other uses are inevitable,” Strain glibly points out.

In other words, when Republicans vote for the 60th time to repeal the ACA, they will be saying to America that the poor and the very sick will die and that is perfectly okay because that’s how the free market works.

Truthout Is Preparing to Meet Trump’s Agenda With Resistance at Every Turn

Dear Truthout Community,

If you feel rage, despondency, confusion and deep fear today, you are not alone. We’re feeling it too. We are heartsick. Facing down Trump’s fascist agenda, we are desperately worried about the most vulnerable people among us, including our loved ones and everyone in the Truthout community, and our minds are racing a million miles a minute to try to map out all that needs to be done.

We must give ourselves space to grieve and feel our fear, feel our rage, and keep in the forefront of our mind the stark truth that millions of real human lives are on the line. And simultaneously, we’ve got to get to work, take stock of our resources, and prepare to throw ourselves full force into the movement.

Journalism is a linchpin of that movement. Even as we are reeling, we’re summoning up all the energy we can to face down what’s coming, because we know that one of the sharpest weapons against fascism is publishing the truth.

There are many terrifying planks to the Trump agenda, and we plan to devote ourselves to reporting thoroughly on each one and, crucially, covering the movements resisting them. We also recognize that Trump is a dire threat to journalism itself, and that we must take this seriously from the outset.

Last week, the four of us sat down to have some hard but necessary conversations about Truthout under a Trump presidency. How would we defend our publication from an avalanche of far right lawsuits that seek to bankrupt us? How would we keep our reporters safe if they need to cover outbreaks of political violence, or if they are targeted by authorities? How will we urgently produce the practical analysis, tools and movement coverage that you need right now — breaking through our normal routines to meet a terrifying moment in ways that best serve you?

It will be a tough, scary four years to produce social justice-driven journalism. We need to deliver news, strategy, liberatory ideas, tools and movement-sparking solutions with a force that we never have had to before. And at the same time, we desperately need to protect our ability to do so.

We know this is such a painful moment and donations may understandably be the last thing on your mind. But we must ask for your support, which is needed in a new and urgent way.

We promise we will kick into an even higher gear to give you truthful news that cuts against the disinformation and vitriol and hate and violence. We promise to publish analyses that will serve the needs of the movements we all rely on to survive the next four years, and even build for the future. We promise to be responsive, to recognize you as members of our community with a vital stake and voice in this work.

Please dig deep if you can, but a donation of any amount will be a truly meaningful and tangible action in this cataclysmic historical moment.

We’re with you. Let’s do all we can to move forward together.

With love, rage, and solidarity,

Maya, Negin, Saima, and Ziggy