How will the GOP deliver on its health care promises?
While relatively few Americans rely on Obamacare for health insurance, virtually all of us have a stake in how the debate over repeal of the Affordable Care Act plays out.
When it was signed into law in 2010, the ACA changed the landscape of health care.
Not only did the new law provide a means for Americans to purchase insurance through state exchanges, it also significantly altered the way in which the health care industry conducted business. Hospitals, doctors, patients, insurance companies – pretty much all Americans were affected.
Among the myriad of provisions in the complex and ambitious law are the following:
- A mandate that all Americans have health insurance.
- A mandate that insurance companies offer insurance to people who have existing medical conditions.
- The establishment of state insurance exchanges that offer subsidies to many low and middle-income families.
- A requirement that insurance policies offered through state exchanges limit out-of-pocket expenses for customers.
- The elimination of caps (typically $1 million) on lifetime insurance coverage.
- Mandates that health care providers maintain electronic records and offer patients access to those records.
- Rules that move the industry to a value-based system in which the federal government and insurance companies pay health care providers based on the efficacy of treatments and the quality of care. The plan is to move away from a fee-for-services system.
- Penalties for bigger businesses that fail to provide health insurance to full-time employees.
- New taxes and surcharges designed to pay for the ACA. Companies that are self-insured, insurance companies, makers of medical devices, employees and retirees with extraordinarily generous health care benefits, and people who don’t have health insurance all face fines, fees or taxes under the law, although some of these have been postponed or dropped.
That’s just a partial list.
Republican leaders have vowed to repeal the ACA and provide Americans with an alternative. President Donald Trump told the crowd at a campaign rally in Florida Feb. 18 that “our plan will be much better health care at a much lower cost.”
Trump has not disclosed any specific information about the GOP plan. Similarly, Health and Human Services Secretary Tom Price has failed to describe what provisions Republicans will include in their legislation.
Republicans in Congress talk about eliminating mandates, including those requiring people to buy insurance and those that affect manufacturers, providers and health insurance companies. There also is talk of tax credits and health savings accounts.
As a physician and a Republican, HHS Secretary Price has long opposed the ACA, arguing that it intrudes on doctor-patient relationships and comes with excessive paperwork and rules.
His support of value-based systems is doubtful.
While serving as a representative from Georgia in the U.S. House, Price at least twice pressured federal officials to quash recommendations regarding unnecessary screenings and tests, according to a report from ProPublica.
A panel of doctors and researchers had found that the tests were overused and often led to unnecessary or even risky medical procedures. Under the ACA, the panel’s findings would become the basis for determining how many screenings and tests insurance should pay for.
Price disagreed with the panel’s conclusions, arguing that the government and insurance companies should pay for all testing and treatment the doctor deems necessary.
That’s not a surprising argument from a doctor. And it underscores the difficulty of trying to control health care costs while ensuring good care.
It will be virtually impossible to rein in health care costs if the efficacy of treatments is to be ignored.
The federal government is by far the biggest customer of health care, through its payments for Medicare and partial funding of Medicaid. Even before the ACA, the government made decisions regarding the effectiveness of specific treatments and whether they would be covered.
The government and insurance companies also set limits on how much they will pay for certain procedures, hospital stays and providers’ services.
As Republicans craft their plan, consumers should press them to ensure access and affordability for sure. But they also should demand that health care continue to move toward a model that pays for value rather than volume.