PNHP

In Trump’s First 3 Years, 2 Million Americans Lost Healthcare, Thousands Died Prematurely

In Trump’s First 3 Years, 2 Million Americans Lost Healthcare, Thousands Died Prematurely

By Brian Mastroianni (fact checking by Dana K. Cassell)
Healthline, November 3, 2020

  • A new analysis reveals that the number of Americans without health insurance increased by about 2.3 million between the years 2016 and 2019, the majority of President Donald Trump’s current term in office.
  • This drop in health coverage led to at least 3,399 and possibly as high as 25,180 premature deaths in the United States.
  • These numbers show that health in the United States was on the decline even before the arrival of the COVID-19 pandemic.
  • The decline is a direct result of efforts by the Republican Party to repeal and limit aspects of the Affordable Care Act.

Over the course of the past 4 years of tumult in American life, one area has been particularly charged: healthcare.

Debates over the Affordable Care Act (ACA), or “Obamacare,” and whether it should be limited, repealed, replaced, maintained, or expanded have dominated policy discussions from all parts of the political spectrum.

Left, right, or center, it’s been impossible to escape discussions over how the United States should provide healthcare access to its citizens.

Essentially, the health and well-being of millions of Americans have been on the line while these debates rage on. Central to all of this has been the Trump administration’s efforts to limit and ultimately repeal the ACA.

It’s taken a devastating toll.

A new analysis published on the blog for Health Affairs reveals that the number of Americans without insurance increased by about 2.3 million between the years 2016 and 2019, the majority of President Donald Trump’s current term in office.

This winnowing away at health coverage led to at least 3,399 and possibly as high as 25,180 deaths.

This is before the start of this year’s COVID-19 pandemic, which has been particularly deadly for vulnerable groups, especially Black and Latino communities, who historically face road blocks when it comes to healthcare and insurance access.

Were there any surprises from these findings?

“Until the pandemic hit, the economy was doing well and unemployment was falling — which should make the uninsurance rate fall too,” lead author Dr. Adam Gaffney, a pulmonary and critical care physician at Harvard Medical School and the Cambridge Health Alliance, told Healthline.

Gaffney and his co-authors, Dr. David Himmelstein and Dr. Steffie Woolhandler, both of CUNY School of Public Health at Hunter College, looked at results from the American Community Survey (ACS), the Current Population Survey, and the National Health Interview Survey, three federal surveys that look at health insurance coverage data.

“The fact that all three federal surveys showed that the uninsurance rate rose over the first 3 years of the Trump administration is surprising. Things were getting worse — even before COVID-19,” Gaffney said.

What the data reveals

Dr. Andrew Bindman, a professor of medicine, epidemiology, and biostatistics and a core faculty member at the Philip R. Lee Institute for Health Policy Studies at the University of California, San Francisco, told Healthline that the Trump administration has “made it an explicit goal from day one to undermine” the ACA.

“While President Trump failed to deliver on his promise to overturn the ACA, he has done all he could without the approval of Congress to sabotage the law,” Bindman said.

“Unlike President Obama, who focused on expanded coverage, President Trump’s legacy is a decline in healthcare coverage, leaving Americans less protected during a pandemic when the security of healthcare coverage is more important than ever,” he said.

Bindman knows a lot about the ACA since he was one of the people who helped draft it. He made his contributions to the legislation when he served as a health policy fellow on the staff of the House Energy and Commerce Committee.

Like Bindman, John McDonough, DrPH, MPA, a professor of public health practice in the department of health policy and management at the Harvard T.H. Chan School of Public Health and director of executive and continuing professional education, is another person intimately familiar with the healthcare plan.

He worked on the development and passage of the ACA while a senior adviser on national health reform to the Senate Committee on Health, Education, Labor, and Pensions.

McDonough echoed Bindman in saying this analysis accurately pinpoints how healthcare has suffered under this current administration.

While the number of uninsured people declined for 6 years during the Obama administration — including the rate of uninsured children — they have only gone up during Trump’s time in office, he said.

“We can connect this rise in uninsurance to policy decisions by the Trump administration, including the cessation of nearly all federal support for enrollment navigators and assisters, the reduction in the individual mandate penalty to zero, and the expansion of junk, short-term health insurance plans, among other interventions,” McDonough added.

Leighton Ku, PhD, MPH, professor and director of the Center for Health Policy Research at the Milken Institute School of Public Health at George Washington University, said that “the reasons for the reduction in insurance coverage during the Trump years are not completely clear, but certainly, this represents a reversal from the Obama years.”

He added that the current administration has been “clear in its intent to weaken the ACA in various ways,” and that this current data “suggests that they succeeded in erasing coverage gains made during the earlier period.”

The results are stark. Ku told Healthline that this has “caused more people to go without healthcare and to die earlier.”

Gaffney echoed all the other experts in saying that while the Trump administration tried to repeal and replace the ACA — in fact, no clear replacement plan has ever been put on the table — the damage has been done.

“It has managed to undercut the healthcare coverage of millions through smaller actions, leading to thousands of deaths,” he said.

What happens if it’s overturned by the Supreme Court?

An undercurrent running through this whole period of time is the looming Supreme Court case on Nov. 10, just days after this year’s general election.

The court — which just confirmed its newest justice, Amy Coney Barrett, to replace the late Ruth Bader Ginsburg — will hear oral arguments from 20 Republican state attorneys general.

What would happen if the Supreme Court overturns the ACA?

According to Gaffney, especially in light of the poor state of American healthcare as seen by these surveys, the stakes are incredibly high.

“Full overturning of the ACA by the Supreme Court could lead to 20 million people losing coverage, including many children. This would come at the cost of tens of thousands of lives lost annually, needlessly,” Gaffney said.

Bindman agrees, adding that weakening or overturning the ACA without any kind of replacement plan at the ready will “result in significant declines in the number of Americans who are able to obtain healthcare coverage.”

“This will be particularly hard on the tens of millions of Americans with preexisting conditions who would lose the guarantees of the ACA and would likely either be turned down when seeking coverage or face costs for coverage that will make it impractical for them to obtain it,” Bindman added. “This will leave them financially vulnerable and susceptible to poor health outcomes, including premature death.”

While all four experts agree an elimination of the ACA would cause huge declines in overall health in the United States, particularly among the most vulnerable members of our society, it’s hard to know exactly what will happen at the Supreme Court this month.

“We do not know what the Supreme Court will hold. They will hold the hearing next month and probably won’t issue a decision for several months,” Ku said.

For Ku, even if portions of the law are found to be unconstitutional by the court, it isn’t clear whether that means the entire law will be canceled, “nor what the next president and Congress will do.”

“So, while that dark prediction is conceivable, it is far from certain,” he stressed.

There have already been efforts to chip away at the legislation. For instance, a 2017 congressional tax bill was passed that cut out the ACA penalty for people who didn’t already have health insurance.

McDonough said that even if the court repeals the individual mandate in and of itself, the “damage has already been done” due to the repeal of this penalty.

“If the court were to decide to go further, the damage could be considerable, including repeal of coverage for 20 million Americans who get it via ACA provisions, and the roughly 100 million with preexisting conditions who might lose those protections going forward,” he added.

“If the court were to repeal the tax increases and the Medicare payment reductions, that would trigger an immediate financial emergency for the Medicare Part A Hospital Insurance Trust Fund. And lots more,” McDonough said

What if Joe Biden wins?

Of course, tensions are running especially high because all of this is happening in the middle of a contentious presidential election that is itself taking place while the COVID-19 pandemic rages on.

Trump and Vice President Mike Pence’s opponents, former Vice President Joe Biden and Sen. Kamala Harris, have made healthcare a focal point of their campaign.

Whether a plan to address COVID-19 or expanding the ACA with a public option, which would create a government-sponsored plan that would compete with private insurance offerings, public health and politics seem like they’re unable to be separated from one another at this point.

What if Biden wins? What if the Supreme Court overturns the ACA as a Biden-Harris administration readies to head to the White House in January?

Gaffney said a new government could “tweak the ACA” so that a negative Supreme Court decision could become “basically irrelevant.”

McDonough said that while the court is going to hear the case this month, no decision will likely come until about next June. He said a decision made by the Supreme Court would give Congress time to take some kind of alternative action.

“If Democrats win control of the White House, Senate, and House in the Nov. 3 elections, it is likely that they would pass a law quickly in late January or February to nullify the current court case, for example, by reinstating a $5 or so penalty for not having health insurance,” he explained. “Then there would be no grounds for the suit to continue.”

That being said, if Republican leaders hold on to the Senate, McDonough foresees that a new agreement would be harder to achieve.

“Federal efforts to expand insurance coverage requires a president who is committed to that goal working to gain the cooperation of Congress to pass legislation that addresses failures in the marketplace to produce that goal,” Bindman said.

He cited Biden’s pledge to make purchasing coverage through the health insurance marketplace more affordable and to “ensure those who meet poverty standards for Medicaid obtain coverage through a federal public option if the state where they live has not expanded Medicaid as a part of the ACA.”

Bindman added that the ACA has withstood challenges at the Supreme Court in the past.

“But if in this instance the Supreme Court overturns the ACA, President Biden would have a bigger challenge to achieve his goal of expanding coverage,” he said.

“The outcome of House and Senate races will determine whether he will have a Congress that is prepared to help him pass legislation that negates the Supreme Court’s actions,” Bindman explained.

For his part, Ku agreed that if Biden and Harris win and the Democrats have a Senate majority, we will see a legislative parry to the Supreme Court’s decision, which would “strengthen insurance coverage and avoid excess mortality.”

“On the other hand, if Republicans hold the majority or Trump wins, the legislative response to the Supreme Court decision becomes much less clear since Republicans don’t really have a health plan that would increase insurance coverage,” he said.

Ku stressed that the “real elephant in the room” is, of course, the pandemic and the administration’s failed efforts to contain those ever-escalating COVID-19 numbers.

“As bad as the insurance failures of the Trump administration have been, the poor handling of the pandemic have probably been more harmful,” Ku said.

Gaffney imagines that, even if Biden and the Democrats prevail in this general election, debates over how best to reform and improve healthcare in the United States will continue.

“If there is an electoral shift on Tuesday and a Democratic government comes into power, it will likely lead to a new debate over comprehensive healthcare reform, and I predict over Medicare for All as well,” Gaffney said.

“It’s not enough to reverse the harms caused by the Trump administration — 30 million were uninsured even before the COVID-19 pandemic, and the number is likely higher now. We have to ensure health protection for every American,” he said.

https://www.healthline.com…

Phil Lee & Don Bechler: A tribute

By James G. Kahn, M.D., M.P.H.
Emeritus Professor of Health Policy, University of California, San Francisco

Last week saw the passing of two amazing leaders in the pursuit of health care justice in the United States – one who operated at the highest political, policy, and academic levels, and one who worked tirelessly at the grassroots with the most vulnerable. Phil Lee and Don Bechler led and inspired us for decades in the ongoing struggle for a health system that benefits everyone. I had the distinct honor of knowing and working with both of them.

Philip R. Lee was 96, with a storied career spanning more than 50 years in government and academia. I met Phil in 1987 when he invited me to do an AIDS cost research project at the Institute for Health Policy Studies (now named for him) at UCSF. I extended my association with him in 1989 as a health policy fellow at IHPS. He was the ultimate networker, with a massive double Rolodex, when those were physical items. He knew everyone in health policy and often had hired and/or mentored them. He was the person in DC who, as Assistant Secretary for Health under LBJ, told U.S. hospitals: if you want Medicare money, no more racially segregated wards. After serving as UCSF Chancellor, he started IHPS as the first ever academic health policy unit in the U.S. He served another stint as Assistant Secretary for Health under Bill Clinton. He was and is a guiding light for many of us: with Phil, it was always about public service and improving health. He consistently projected his vision, his determination to achieve that vision, and his encyclopedic knowledge of people and ideas. He guided me in my fellowship days. One small memory comes to mind. I jotted on a piece of paper something like “Health services research is the study of how outcomes (mortality, cost, etc) in operating health systems vary according to location, type of provider, patient characteristics, etc.” Phil saw it, and said, that’s a great definition, where did you get it? “I made it up.” To this day, this approval from Phil is one of my proudest moments. I’m sure thousands will mourn his loss and recall his greatness. Millions benefited – and continue to benefit – from his leadership.

Don Bechler (73) followed a different and also awe-inspiring path. Don trained and worked as an airplane mechanic. He worked intensively in 1994 on the California Prop 186 single payer ballot initiative. In the late 1990s he was laid off from his airline job, and started full-time organizing around single payer, supported for living expenses by single payer colleagues. He had an unswerving devotion to work at the grassroots level with community members and groups, in mirror image to Phil’s hobnobbing with presidents and prominent academics. I wonder if they knew each other; I hope so. Don was a wonderful colleague in the single payer movement, appreciating the role of research like mine. I was always honored when Don called to request a talk about one economic issue or another. But for Don the core focus was people, the vulnerable and downtrodden, those who would be helped by truly universal health insurance. I remember when I saw him at a Bernie speech at Zellerbach Hall at UC Berkeley in 2016. We were chatting in line and I asked him, “So, realistically, is single payer happening?” – this question to a guy who lived each day as if it must. He became thoughtful, “There’s too much money vested in what we currently have.” Oddly, I wasn’t put off or disconcerted by that. I redoubled my efforts. Don was an inspiration: every day he worked for what was right and just, despite the odds. Don signed off of every email with “You are great! Don.” I try to pass that sentiment forward with my colleagues in the fight for health justice.

A Biden win in the election tomorrow saves democracy. It doesn’t solve health systems problems, but offers a platform for moving forward. Phil and Don will inspire us as we fight for that crucial next step.

More about them:
https://en.wikipedia.org…
https://healthpolicy.ucsf.edu…
https://www.legacy.com…

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.

Medicare for All Explained Podcast: Episode 45

Interview with Dr. Anna Stratis

November 1, 2020

As a Canadian-trained physician who practiced in the United States before returning to clinical practice in Toronto, Dr. Anna Stratis expresses relief at no longer having to deal with commercial health insurers, and cautions her Canadian colleagues against allowing corporate entities to gain traction there. “The private sector will always consider their shareholders first and the patients second,” she says.

Additional episodes will be uploaded twice monthly. Subscribe in iTunes, or access a complete archive of the podcast, below.

https://medicareforallexplained.podbean.com

Half of Americans are worried about medical debt

Survey: Majority of U.S. Adults Concerned About Medical Bankruptcy, Debt

By Dan Grunebaum
HealthCareInsider, October 29, 2020

Concerns About Healthcare and Debt

  • 56% of U.S. adults said they were either somewhat or very concerned that a health situation in their household could lead to bankruptcy or debt.

Medical Debt

  • Nearly three in ten (28%) respondents to the poll said they carry medical debt.
  • Of those who reported having medical debt, 65% had debts exceeding $1,000.
  • Surprise medical bills can be a source of medical debt.
  • Three in ten respondents (28%) reported having received a surprise medical bill in the past year (since October 2019).

Lack of Savings

  • Only just over half (57%) of U.S. adults contacted for the survey said they have savings to pay medical bills.
  • 21% said they have no savings. 29% had $3,000 or less (excluding none), and 28% more than $3,000.
  • Among all respondents, 32% had $500 or less in savings; 21% had no savings at all, while 11% had $1 to $500 on hand.

Cost Top Reason to Skip Healthcare

  • Just under half of U.S. adults (46%) postponed healthcare services in the past year.
  • Of those who did, over three in ten (32%) respondents said they didn’t seek healthcare services because they couldn’t afford it.
  • Of respondents who reported no health insurance (13% overall), more than half (53%) said they could not afford it.

Low Comprehension of ACA Subsidies

  • Despite some U.S. adults saying they lack health insurance due to cost, many are unaware they could qualify for financial help.
  • Over half (52%) of respondents didn’t know whether you can receive an Affordable Care Act subsidy (a tax credit) to help pay for health insurance if you aren’t eligible for Medicare.

Politics and Healthcare

  • Over four in ten (44%) pollees said they trust the Democratic Party most to ensure they and their family can obtain affordable healthcare.
  • 28% trusted the Republican Party most. 12% said they trusted independents most to ensure they and their family can obtain affordable healthcare, and 13% were undecided.

HealthCareInsider.com commissioned YouGov PLC to conduct the survey. YouGov PLC is a research company using online panels to provide research for public policy, market research, and stakeholder consultation.

https://healthcareinsider.com…

Comment:

By Don McCanne, M.D.

Of all wealthy nations, the United States is in first place in exposing patients to financial hardship. How long are we going to continue to look at numbers like these?

What are we doing about it? We have an election next week in which one candidate has promised us undefined “beautiful” health care while wreaking havoc on the system we do have, including asking the Supreme Court to invalidate the Affordable Care Act, and the other candidate promises to patch the Affordable Care Act with measures that will leave our highly dysfunctional financing infrastructure in place, perpetuating most of the financial hardships that patients are exposed to today (the majority of people with medical debt are insured through our flawed system).

We know what the solution is. If we enacted and implemented a well designed, single payer improved Medicare for All, we would redirect the profound waste in our system to fill the voids in health care while establishing an equitable, progressively-funded risk pool that would make health care affordable for each of us, finally ending our unique scourge of financial hardship due to medical bills. If we did this, we would not be spending any more than we already are, but we would no longer have to pretend that we have the finest health care system in the world because it would finally become a reality. What’s wrong with the best, if you can actually have it?

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.

Crowdfunding in Canada, the UK, and the US

A Comparison of Online Medical Crowdfunding in Canada, the UK, and the US

By Sameh N. Saleh, M.D.; Ezimamaka Ajufo, B.M., B.Ch.; Christoph U. Lehmann, M.D.; Richard J. Medford, M.D.
JAMA Network Open, October 26, 2020

Key Points

Question: Why do individuals from Canada, the UK, and the US turn to medical crowdfunding and what factors are associated with funding success?

Findings: In this cross-sectional study of 3396 crowdfunding campaigns designed to raise monetary donations for medical expenses, female gender, Black race, and routine care were associated with a strong fundraising disadvantage. For campaigns primarily funding treatment, routine care was overwhelmingly represented in the US (77.9%), in contrast to Canada (21.9%) and the UK (26.6%), and crowdfunding primarily funding alternative therapies (16.0%) was more common for cancer (23.5%) vs noncancer (6.5%) diagnoses.

Meaning: These findings suggest that there are important differences in the reasons for medical crowdfunding across the 3 countries included in this analysis and that there are racial and gender disparities in crowdfunding success.

From the Discussion

In the US, nearly 80% of campaigns primarily funding treatment were for routine care, whereas in Canada and the UK, funding for routine care was sought about as frequently as funding for alternative, approved but inaccessible, and experimental therapies. Campaigns for routine care were negatively associated with crowdfunding success, whereas campaigns for experimental and approved but inaccessible therapies were positively associated with funding success.

Crowdfunding was initially heralded as a digital safety net or a mechanism for democratizing charity where anyone could benefit. However, anecdotal and empirical evidence suggests that crowdfunding may exacerbate socioeconomic inequities.

Conclusions

We provide a foundational descriptive analysis of MCF and factors associated with success in Canada, the UK, and the US, and highlight important differences in MCF trends between publicly and privately funded health care systems. Our findings also suggest that there are racial and gender disparities in the use and success of MCF. MCF directly (through platforms that promote the victim narrative) and indirectly (by rewarding these narratives with funding success) promotes the myth that gaps in health care funding are due to misfortune and exceptionality, rather than systemic failures. As such, MCF may entrench the systemic failures that led to its need. Thus, although crowdfunding has the potential to provide short-term relief from medical financial burden for a subset of patients, it may carry wider-reaching paradoxical societal effect for those most socially disadvantaged.

https://jamanetwork.com/…

Comment:

By Don McCanne, M.D. 

Because of the deficiencies in our health care financing system, it is easy to see why some resort to charitable crowdfunding to help pay their medical bills. But why do Canada and the UK use crowdfunding when they have universal financing systems? The differences can give us some insight as to how the respective health care financing systems work.

Crowdfunding in the United States is used more frequently for routine care than it is in Canada and the UK for the obvious reason that their systems work better for covering routine care. In contrast, crowdfunding in Canada and the UK is frequently used for inaccessible or experimental therapies, as might be expected. To no surprise, crowdfunding for routine care is not as successful as it is for inaccessible or experimental services.

Crowdfunding is also used for alternative medicine, especially for cancer, since it is inappropriate to use public funds for care that is unproven and may be unsafe.

Sadly, crowdfunding may also exacerbate socioeconomic inequities because of racial or gender disparities. We would expect that that would be much less common under a truly equitable, universal system, though we would like to see the inequities totally disappear.

When we discuss single payer Medicare for All we frequently specify that it be a well designed system. As such, the system should work even better than those in Canada and the UK, and there should be no need for crowdfunding to pay medical bills. If experimental therapy might be appropriate then that should be funded by NIH research grants until the studies confirm effectiveness and safety.

Whether it’s a tin cup in hand, or crowdfunding in the computer age, that is no way to fund health care. Time for solidarity so we all have the health care we need.

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.

More than 2 million Americans Lost Health Coverage during Trump’s First Three Years in Office, Leading to Thousands of Premature Deaths: New Harvard Analysis

Researchers also estimate 22,893 – 68,345 unnecessary deaths annually if the Supreme Court overturns the Affordable Care Act (ACA) in November

A new analysis of federal surveys on health insurance coverage concludes that the number of uninsured Americans increased by about 2.3 million between 2016 and 2019. The analysis by researchers at Harvard Medical School and the City University of New York’s Hunter College, published today in Health Affairs blog, concludes that the contraction of coverage under President Trump caused at least 3,399, and perhaps as many as 25,180, excess deaths even before the onset of the COVID-19 pandemic.

The researchers examined results of three benchmark federal surveys that collect data on health insurance coverage — the American Community Survey (ACS), the Current Population Survey, and the National Health Interview Survey.  All three surveys indicate that uninsurance has risen under President Trump, but the researchers cite the ACS results as the most reliable. (Changes in methodology and data collection processes since 2016 hinder interpretation of year-to-year changes in the other two federal surveys). Using the ACS-based data indicating that the number of uninsured Americans has risen by 2.3 million, the researchers calculated the number of resulting excess deaths by applying estimates of the mortal consequences of being uninsured from previous rigorous, peer-reviewed studies.

“I see that my uninsured patients often can’t get the care they need, and research proves that many who lack coverage die as a result,” noted study author Dr. Steffie Woolhandler, a Distinguished Professor of Urban Public Health at Hunter College and Lecturer at Harvard Medical School. “President Trump has tried at every turn to undermine the ACA and chip away at coverage. That’s costing thousands of lives,” she added.

“Our analysis warns that much worse is ahead if the Supreme Court overturns the ACA, as Trump’s Justice Department is advocating,” stated lead author Dr. Adam Gaffney, a pulmonary and critical care physician at Harvard Medical School and the Cambridge Health Alliance. “Gutting the ACA  would throw another 19.9 million Americans off of insurance, and cause up to 68,345 extra deaths each year. We need to expand insurance, not shrink it. With 30 million uninsured today, we could save thousands of lives by achieving universal coverage,” he added.

“How Much Has The Number of Uninsured Risen Since 2016 — And At What Cost To Health And Life?“, by Adam Gaffney, M.D., M.P.H., David Himmelstein, M.D.,  and Steffie Woolhandler, M.D., M.P.H., Health Affairs, published online Oct. 29, 2020.
10.1377/hblog20201027.770793

For a copy of the full paper, contact clare@pnhp.org

Should we cover all children as a sequential step in reform?

Children’s Health Insurance Coverage: Progress, Problems, And Priorities For 2021 And Beyond

By Joan C. Alker, Genevieve M. Kenney, and Sara Rosenbaum
Health Affairs, October 2020

Abstract

Expansion of Medicaid and establishment of the Children’s Health Insurance Program (CHIP) represent a significant success story in the national effort to guarantee health insurance for children. That success is reflected in the high rates of coverage and health care access achieved for children, including those in low-income families. But significant coverage gaps remain—gaps that have been increasing since 2016 and are likely to accelerate with the coronavirus disease 2019 (COVID-19) pandemic and the associated recession. Using National Health Interview Survey data, we found that the proportion of uninsured children was 5.5 percent in 2018. Children continue to face coverage interruptions, and Latino, adolescent, and noncitizen children continue to face elevated risks of being uninsured. Although we note the benefits of a universal, federally financed, single-payer approach to coverage, we also offer two possible reform pathways that can take place within the current multipayer system, aimed at ensuring coverage, access, continuity, and comprehensiveness to move the nation closer to the goal of providing the health care that children need to reach their full potential and to reduce racial and economic inequalities.

SOURCES OF CHILDREN’S COVERAGE:

  • EMPLOYER-SPONSORED COVERAGE: Tax-advantaged, employer-sponsored coverage is the dominant source of insurance among children in higher-income families. But for low- and moderate-income families, workplace benefits for children are increasingly unaffordable, as annual premium growth continually outstrips wage increases or might not be available at all.
  • MEDICAID AND CHIP: Low- and moderate-income families without affordable employer coverage for their children rely chiefly on Medicaid and CHIP.
  • MARKETPLACE COVERAGE: Subsidized Marketplace plans are an important but modest source of coverage for children, given that Marketplace subsidies are unavailable to children and adults who are eligible for other public insurance.

THE CURRENT LANDSCAPE:

Despite the major advances made, the current insurance picture for children does not include the permanent, stable coverage guarantee that the elderly enjoy through Medicare.

Coverage lapses remain a problem for children.

IMPROVING CHILDREN’S COVERAGE:

Given the limits of existing forms of coverage, there is much to be said for replacing the current system for children with a model akin to Medicare—that is, a nationwide, federally financed, single-payer public insurance plan that commences at birth and continues at least into young adulthood. Such an approach might be phased in, beginning with infants and young children, by specifying that no infant born after a certain date begins life without enrollment in the new system. This model, over time, would replace today’s multipayer arrangement and ideally would offer the full range of necessary care from preventive through long-term services and supports.

A single-payer model for children has been the subject of debate for decades, beginning soon after the passage of Medicare itself. Such an approach offers certain structural advantages: nationwide uniformity, durability, continuity, and the potential to universalize special coverage parameters that, similar to EPSDT benefits, have been expressly designed to meet the unique needs of children and adolescents. The other profound benefit of this model, and one that should be uppermost in policy makers’ minds in 2020, during the period of intense national reflection on the problem of structural racism, is that such a model could also help advance the cause of health equity relative to a multipayer model, whose components are determined by family income, as certain payers inevitably become associated with poverty and racial/ethnic characteristics—things that should play no role in determining the need for care or its quality and accessibility.

We recognize, however, that such a strategic direction involves a major overhaul of the system, with significant dislocation and commitment of new federal resources, which is very unlikely to happen quickly. Therefore, we identify two basic reform pathways that represent the next evolution of the current multipayer system for children.

One option would be to increase the mandatory income eligibility level for children under a combined Medicaid and CHIP benefit that sets the mandatory minimum level nationwide to 300 percent of the federal poverty level, which is fully federally financed.

Instead of going the Medicaid/CHIP route, policy makers could make major improvements in Marketplace coverage, including the elimination of the family glitch. Under this model, mandatory Medicaid eligibility could remain at 138 percent of the federal poverty level, while federally financed Marketplace subsidies would rise for families with incomes up to 400 percent of poverty, and subsidies that meet an affordability standard could be extended to families above that income level.

https://www.healthaffairs.org…

‘MediKids’ Would Insure More Children

By Don R. McCanne, M.D.
Los Angeles Times, June 1, 2000

Our current efforts at reform have failed miserably. The number of children enrolled in Healthy Families has been offset by the decline in the enrollment in the MediCal program and an increase in the number of children who have lost their coverage because of termination of employment-based plans in which their parents could have been enrolled. What we need is not incremental reform, but sequential reform aimed at universal coverage.

To this end, Rep. Pete Stark (D-Ca.) and Sen. Jay Rockefeller (D-W. Va.) have introduced the MediKids Health Insurance Act of 2000 (HR 4390 and S 2515), which would establish a separate Medicare program just for children. The unique, defining feature of this act is that every child would be enrolled automatically at birth in the MediKids program. Parents could opt out only by presenting evidence of comparable private coverage. Any lapse of that coverage would cause an automatic return to the MediKids plan. When fully implemented, MediKids would assure every child of having health care coverage.

Participation would be an entitlement, as are Medicare and Social Security. The modest premium component of the funding would be collected at the time of submission of income tax returns, with a graduated discount for low-income individuals, assuring that coverage would be affordable for all.

https://www.latimes.com…

Comment:

By Don McCanne, M.D.

Over the last half century, thanks to prior bipartisan support we have been fairly successful in ensuring health care coverage for children, but we have fallen short and coverage has deteriorated over the past three years.

The authors of the Health Affairs article excerpted above have stated it well: “there is much to be said for replacing the current system for children with a model akin to Medicare—that is, a nationwide, federally financed, single-payer public insurance plan that commences at birth and continues at least into young adulthood.”

The idea is not new. An article I wrote two decades ago discusses the MidiKids Act authored by Rep. Pete Stark and Sen. Jay Rockefeller which would have established a separate Medicare program just for children.

Also, Joe Biden is proposing lowering the age of eligibility for the existing Medicare program to age 60.

An important concept here is that these proposals would not be mere incremental steps in which patches are applied to the current highly dysfunctional financing system but rather they would be sequential steps to expand Medicare, as was originally intended when Medicare was established half a century ago.

Merely patching the current system would leave in place all of the dysfunctions that result in very high costs, profound administrative inefficiencies, lack of continuity of coverage and care, inequities in access and coverage, and would still leave millions exposed to financial hardship because of lack of adequate coverage.

Although sequential steps may seem like a better idea, they do not address the problem that Medicare itself has many serious deficiencies that need to be corrected. Also we have already waited 50 years to begin the sequential expansions, but we haven’t gotten beyond Medicare for some of the long-term disabled and ESRD coverage. If we did expand coverage to all children, how long would it be before we guaranteed coverage to those aged 18 to 65 (or Biden’s 60)? Possibly never if those prevail who believe that individual responsibility means you’re on your own rather than joining in solidarity to be our brothers’ and sisters’ keepers.

There are a great many features of a well designed, single payer, improved Medicare for All that would need to be included in a structural reform of health care financing. Though incremental tweaks are a terrible idea because they leave so many out, sequential reform building on our current system certainly has its deficiencies as well. Instead, let’s do it right and take one giant step across the chasm.

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.

Shame on hotels for cutting health insurance

By Anne Scheetz, M.D.
Chicago Sun-Times, Letters, October 27, 2020

To those wealthy hotel chains that are discontinuing health insurance for laid-off workers during the pandemic: For shame!

And to all the politicians who oppose expanded Medicare for all, also known as single-payer national health insurance, as well as to all those who refuse to actively work for it: For shame! If the United States had a single-payer health insurance program, no resident of this country would be without health insurance at any time, no one would receive medical bills, and no hospital would be threatened with closure because its patients were uninsured.

This is a time for solidarity. We need a health insurance program that covers all of us equally, fully financed at the federal level. Everybody in, nobody out!

https://chicago.suntimes.com…

CMA adds ‘equity and justice’ to its mission statement

CMA updates mission statement to reflect commitment to health equity and justice

California Medical Association, October 24, 2020

The California Medical Association (CMA) House of Delegates today voted to edit the association’s Articles of Incorporation and include in its mission statement an overarching permanent goal of achieving health equity and justice.

“CMA must adopt permanent institutions and institutionalized policies, practices and programs that promote, support and make actionable our aspirational principles on health equity and justice in order to eliminate health inequities that undermine our state’s public health and collective well-being,” said Robert Wailes, M.D., Chair of the CMA Board of Trustees.

CMA’s Board of Trustees also this year created a permanent committee—the Justice, Equity, Diversity and Inclusion (JEDI) committee—to ensure that CMA continues to consider its actions through a health equity lens similar to CMA’s longstanding “public health” guiding principle.

CMA’s new mission statement is now as follows:

To promote the science and art of medicine, the care and well-being of patients, the protection of the public health, the betterment of the medical profession, and to achieve health equity and justice.

https://www.cmadocs.org…

Comment:

By Don McCanne, M.D.

For the California Medical Association to include achieving health equity and justice in their mission statement brings sharp focus to the need for reform of our health care delivery system. Although many improvements can be made, they would be difficult without first replacing our health care financing system with an infrastructure built on a foundation of health equity and justice.

Another important development in this age in which new attention is being directed to the pressing need to resolve social injustices is the establishment of the Justice, Equity, Diversity and Inclusion (JEDI) committee – a new permanent committee of the CMA.

Onward!

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.

Health reimbursement arrangements increase risk for low-income workers

Trump Administration Health Reimbursement Arrangements Put ACA Subsidies at Risk for Low-Income Workers

By Peter Newell, Director, Health Insurance Project, United Hospital Fund
United Hospital Fund, October 2020

Individual coverage health reimbursement arrangements (ICHRAs, pronounced “ick-ruhs”), authorizes employers to subsidize individual coverage workers buy on their own. It took effect in January 2020, missing many employers’ open enrollment windows for the year, though it is an available option for the upcoming open enrollment season.

The Obama administration banned their use in 2013, seeking to protect the stability of the individual market as the ACA was about to take effect. Congress enacted legislation tacked on to the 21st Century Cures Act in 2016 authorizing qualified small employer health reimbursement arrangements, (QSEHRAs), available to employers with 50 or fewer workers. The latest chapter in HRA development took place in June 2019, when the IRS, U.S. Department of Treasury, Centers for Medicare & Medicaid Services, and U.S. Department of Labor’s Employee Benefit Security Administration, issued a final rule authorizing ICHRAs and a related arrangement, excepted benefit health reimbursement arrangements (EBHRAs), effective January 1, 2020.

How Do ICHRAs Work?

ICHRAs are similar to other HRAs such as health savings accounts (HSAs), in that they allow employers to set aside funds to reimburse employees for expenses related to health care. In the case of ICHRAs, however, no account is actually established; instead, employer groups allocate funds for each employee, and then employees submit claims to employers (or administrators) for reimbursement, with the reimbursement amounts not taxed as income for the workers. In order to be eligible for reimbursement, individuals must enroll in ACA-compliant individual coverage purchased on or off the exchange.

So What’s Not to Like About ICHRAs?

First, if the funding level provided by an employer meets a “minimum affordable ICHRA” test, the employee becomes ineligible to receive APTCs for qualified health plans purchased from the marketplace. Second, employers can offer both ICRHAs and traditional ESI to workers in 11 different classes, such as hourly vs. salaried employees, or workers at different locations. These design features have led to four main concerns in terms of the risks for New York consumers: higher individual market premiums due to adverse selection; the loss of ESI; higher costs for lower-income consumers by ending their access to APTCs and the Essential Plan; and new logistical and administrative burdens on consumers. (See report at link below for details.)

Increased Burden on Consumers

Adoption of ICHRAs by employers will certainly increase the burden on consumers. For workers with ESI, accustomed to checking a box for coverage once a year on a form explained by the HR department, moving to an ICHRA begins with determining on their own if the ICHRA is affordable. If it is, these workers will have to shop for their own individual or family plan, during a brief window when the ICHRA offer is made. Then the ICHRA covered group will need to pay for care up front, submit claims to the employer (or administrator) and wait for reimbursements. Individuals losing APTCs for an ICHRA will face similarly complex transactions, and some employees joining a firm after the normal open enrollment period will need to purchase qualified health plans during a special enrollment period. Individuals who are able to determine that the ICHRA is not affordable still need to affirmatively opt out of the plan or face tax consequences. Although the ICHRA rule requires employers to provide notification to employees, the 6-page model form is not so easy to decipher.

From the Conclusion

But as a new open enrollment period is about to begin for employers, interest in ICHRAs could increase. Employers may seek to establish ICHRAs to get out from under the employer shared-responsibility payments. Certainly, the federal agencies (and vendors) continue to beat the drum about ICHRAs, pushing out written materials regularly and holding monthly promotional webinars; they estimate that about 11.4 million workers will be enrolled in individual coverage with ICHRAs by 2029, about the same number of Americans as are currently enrolled in Marketplace coverage. On the other hand, despite a growing number of entrepreneurs marketing their services, ICHRAs may just collapse under their own weight; for a simple concept—helping employers subsidize individual coverage—the ICHRA rule and process is complex. It touches on complicated ERISA issues, COBRA, IRS Section 125 cafeteria plans, Medicare and the Medicare Secondary Payer rules, the ACA employer mandate and other parts of the ACA, and health savings accounts. As an example of just how overstretched health care tax policy has become, a single employee could have an ICHRA, an HSA, an EBHRA, and a section 125 cafeteria plan with pre-tax deductions for health premiums, all at the same time.

https://uhfnyc.org…

Comment:

By Don McCanne, M.D.

Why all the complexity? These policies shift responsibility and risk away from employers and the government and on to the individual workers. Bad policy impairs health care justice – not our agenda.

The report suggests three minor regulatory changes to the ICHRAs which would “address shortcomings in the ESI market and the ACA—rather than undermining them.” But ESI and ACA are part of the problem. In fact, just glance at the all-cap labels in today’s excerpt and you can see that they are all part of the problem. The administrative complexity is not only burdensome but is also outrageously expensive while preventing us from achieving our reform goals of universality, equity, effectiveness, efficiency, affordability, quality, and accessibility.

What would fix this? Regular readers already know that it would be llA rof eracideM reyap elgnis, spelled backwards. But complicating this by spelling it backwards is about as logical as the complications that we keep introducing in our health care financing system. Let’s get it right. Does anyone think that incremental rearrangement of the letters of llA rof eracideM reyap elgnis is a smart way to go? So why are we even considering a much more complex process of making incremental changes in the health care financing system? Let’s just take it down and put it up the right way. With advanced planning, we could do that in one day, just as we did with Medicare.

Stay informed! Visit www.pnhp.org/qotd to sign up for daily email updates.