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Watching The GOP Squirm

March 14, 2017

Who knew health care reform would be so hard for the GOP?   After all they had all the answers in the election season.  I really am having too much fun watching this all unfold–or should that be unravel.

As recently as January, Trump was promising that his Administration would provide “insurance for everybody.” Even for a President whose acquaintanceship with the truth is a casual one, explaining away the figures in the C.B.O. report could be tricky. It was not surprising, therefore, that the White House quickly dispatched Tom Price, the new Secretary of Health and Human Services, to rubbish the C.B.O. analysis. “We disagree strenuously” with the coverage estimates in the report, Price told reporters at the White House. Prince insisted that the G.O.P. plan would “cover more individuals at a lower cost.”

Price didn’t provide any numbers to back up this claim. He hasn’t got any. (In fact, on Monday night, Politico reported that the White House’s own internal analysis of the health-care bill projected that twenty-six million fewer people would have coverage over the next decade.) The only thing that the Administration and its allies on Capitol Hill have to fall back on is the vague promise to follow up the A.H.C.A. with a second piece of legislation that would give insurers more freedom to offer cheaper, lower-quality plans, which, in turn, might persuade more young and healthy people to sign up. But that’s a pie-in-the-sky promise. Changing the rules for insurers would require sixty votes in the Senate, which the Republicans don’t have.

If the Republicans really wanted to fulfill Trump’s promise of insuring everybody—or, at least, preventing a big fall in insurance rates—they could have taken the five hundred and ninety-two billion dollars and used them to maintain the Medicaid expansion. Or to enlarge the new tax credits they want to offer for the purchase of individual insurance, which, in some cases, would be much smaller than the subsidies offered under Obamacare.

To be sure, the way the new system would be set up, not everybody would be a loser. For example, a single forty-year-old with an annual income of sixty-eight thousand two hundred dollars could end up saving more than four thousand dollars a year, according to the C.B.O.’s figures. But, in general, people would pay more, at least in the early years after the measure goes into effect.

In the first few years, as some healthy young people drop their insurance plans because they are no longer mandated to purchase them, premiums would go up fifteen or twenty per cent, the report says. After 2020, average premiums could start dropping, and by 2026 the C.B.O. projects they would be ten per cent lower than under the current law. But that would mainly be because insurers would be offering cheaper, crappier plans to young people, and older people would be dropping insurance because they could no longer afford it. It will be interesting to see how Trump tries to sell that prospect to his supporters, many of whom are older and living on modest incomes.

2 Comments leave one →
  1. March 16, 2017 10:38 AM

    I agree with you on both counts, Peter. How from a PR perspective the GOP can include these huge tax cuts for the richest in the land at the same time they are undermining coverage for people down the line is simply stunning. To try and sell that idea with a straight face! The point you raise about Trump is something I too have been watching. He has no convictions on health care and so can be pulled and tugged by all sorts of people–but he did make some promises to the voters that run far apart from what Ryan is trying to peddle. It is simply a mess and bad theatre all at the same time.

  2. March 16, 2017 9:43 AM

    Like everything else that originates in the fevered mind of Paul Ryan, the Randian sociopath from Rock County, the only goal here is to make a select group of potential donors wealthier (the insurance industry, in this case). The American people, as always, can go spank themselves.

    From his earlier rhetoric, I expected Trump to have some real problems with “RyanCare.” I didn’t think he’d play lapdog and sign on so quickly–though I can’t say I’m surprised.

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