ibusinesslines.com
ibusinesslines.com July 23, 2017


Sen. Flake's Support Of Cruz Amendment Meets Criticism

17 July 2017, 04:03 | Erica Roy

Why Ted Cruz's Health Care Fix Can't Save the GOP's Bill

President Donald Trump attends the Women in Healthcare panel hosted by Seema Verma, administrator of the Centers for Medicare & Medicaid Services at the White House in Washington DC

Details of Senate Majority Leader Mitch McConnell's revised health-care bill were unveiled yesterday, and they include everything from expanded health savings accounts to more funding for the treatment of opioid addiction to relaxed rules for Medicaid-a little something for all the warring GOP factions in the Senate.

The new healthcare bill released Thursday contains a proposal by Sen.

The Congressional Budget Office will soon receive a pair of amended versions of the Senate's Better Care Reconciliation Act, one of which has been crafted by conservatives Ted Cruz of Texas and Mike Lee of Utah. "It shouldn't be the government dictating what insurance you can buy".

That might not sound like much, but it has the potential to drive down premiums and re-shape individual health insurance markets across the country, which right now are collapsing under the weight of Obamacare regulations and rising premiums.

The trade group pointed out that part of the exchanges' current woes stemmed from the Obama administration's transitional policy, which allowed individuals to renew their non-ACA-compliant plans.

Specified disease insurance provides supplemental coverage on top of an existing health care policy.

But let's back up. "This so-called adverse selection means in practice, people in poor health and with pre-existing conditions would face sharply higher premiums". The latter could have a big impact on preexisting conditions. This of course is what's happening under Obamacare. Most of the people insured by these pools received subsidies, paid for by premium taxes imposed on insurance companies. "If they are not heavily subsidized, they run the risk of becoming unsustainable and going into a death spiral".


That brings us to the present day. "People who need (comprehensive) benefits go to those policies, which become more expensive". The traditional idea behind insurance is that the healthy subsidize the sick.

The CBO estimated the original bill would increase the number of uninsured Americans by 22 million by the end of 2026. Hence the skyrocketing premiums under Obamacare.

If consumers were willing to buy such "bare bones" plans - and some people did, usually at very low prices - those policies were considered health insurance coverage. "This wouldn't take years". But it was only funded with a one-time appropriation of $5 billion, and enrollment was capped at 115,000 before the exchanges opened because the program was running out of money. The amendment would allow insurers to sell cheaper plans with fewer benefits that would likely attract younger and healthier Americans. But experts say insurance simply doesn't work this way, and the "Cruz amendment" would unleash destructive forces for individuals without employer-sponsored coverage as well as for the system.

America's Health Insurance Plans, an insurer trade group, warns that the conservative amendment to allow companies to sell skimpy plans would destabilize the market and harm coverage for people with pre-existing conditions.

Republicans in the Senate released an updated version of the Better Care Reconciliation Act, their plan to overhaul the USA healthcare system. But critics say that would depend on how much money is provided.

There are other Republican ideas being floated as well. Sen.



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