Friday, May 1, 2015

Republicans scramble to get out of the Obamacare mess they created for themselves

Republican lawmakers know very well that they're in an awful bind completely of their own making.

They insisted on pursuing every possible avenue for destroying Obamacare, and now one might work out for them. The Supreme Court could very well decide in June to strike down subsidies to the around 8 million people who have purchased insurance on the federal exchange, making keeping that insurance impossible for many, and making those 8 million people very, very angry. Most Republicans have now come around to the idea that maybe that's not going to be such a great thing for them, particularly those who have to be re-elected next year. One of them, Sen. Ron Johnson (R-WI) has introduced legislation that would extend the subsidies into 2017. But Johnson isn't the only one who has some kind of fix, and most of those "fixes" create real problems going forward.

The Johnson plan would prohibit new customers in both the state and federally operated exchanges from receiving subsidies and repeal the individual and employer mandates. In addition, it would eliminate the Affordable Care Act's minimum essential benefit requirements, allow states to set those benefit rules, and grandfather in existing health plans that are not compliant with the ACA.

Another proposal, by Sen. Ben Sasse (R-Neb.), would continue premium subsidies for 18 months but phase them out over that period. For six months after the court rules, financial assistance for all subsidy-eligible exchange customers would be set at a flat 65% of premium costs. That would decrease by 5 percentage points each month until the subsidies were completely eliminated. During the transition period, insurers would be prohibited from raising premiums. In addition, the Sasse bill would prohibit HHS from providing federal exchange technology to states interested in establishing their own exchanges. […]  READ MORE

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