The Affordable Care act in 2021 increased the premium tax credits for the majority of middle class from the previous amounts more targeted for lower threshold income households, and extended those until 2025 with the Inflation Reduction Act a year late.
The one Big piece of crap Bill just enacted this year, did not include an extension of those tax credits, so they are going to expire at the end of this year. The reconciliation being held up and shutting down the government does not include anything to address that concern. As a result, the new Insurance premiums going out currently are indeed as predicted showing significant increases in premiums next year.
The result is that the government remains closed, until the Republicans and Democrats in the Senate modify the reconciliation and send it back to the House for another revision and vote, or somehow convince enough Democrats to vote to pass the reconciliation with a promise to address the Insurance premium tax credit issue separately. Fat chance of that happening, especially with Trump having veto power.
Additionally, as the result of many people no longer able to afford the insurance, hospitals will be closed as they will not be able to afford to absorb the enormous costs associated with the reduction of patients with insurance coverage, and the massive increase caused by people going to the emergency clinics for care that cannot be denied by law.
The politicians in both parties knew that this issue existed and have done nothing to address it. Years have passed where something could have been proposed, but instead it was ignored.
Why?
I am certain that the finger pointing and blame for this predicament is abundant, but that is simply a useless tactic to avoid reality.
Healthcare Insurance needs to be addressed on a national level for all members of the marketplace. The ACA was a massive improvement in assuring folks had an opportunity to enjoy insurance coverage without prejudice of precondition, or any other discrimination, including income level.
Was it perfect? Not at all, and many (mostly Republicans politicians) rejected the notion that regulating the industry at all. The free market believers will never agree that regulation of anything is appropriate.
The result is undeniable though. The shear number of people with insurance coverage has increased significantly from before it was enacted. Even as the cost of the insurance premiums increased, enrollments increased mainly because of the premium tax credits afforded by the subsequent Acts that were enacted to keep the premiums low enough to afford.
But now, because of the lack of progress in addressing the problem that everyone knew was going to happen, a crisis is going to occur in the Health Care industry and to those needing affordable care.
If the voters were sufficiently influenced by the price of eggs in the last election, I can’t wait to see the impact of double and triple digit increases to premiums for middle income households.
Look, there will always be the difference of opinion between free market and regulated market believers. There are legitimate arguments for both sides, depending on one’s economic or capital market ideology.
Governing for the good of all, sometimes requires compromise. Even if that doesn’t follow the strictest measures of purely capitalistic philosophy. The notion that supply and demand establish appropriate prices, also is predicated on having sufficient competition and limited interference. Neither of which is factual in the Health Care Insurance industry.
Everyone acknowledges that the well being of the entire society is more affordable when everyone has some level of affordable coverage. The more people that are potentially able to pay some portion of their medical costs through insurance, the better it is for everyone. And, it is better health wise for everyone too.
Using the hard nosed free market driven philosophy assures only those that can afford health care will get it.
Fewer people paying higher amounts will not be able to support the current hospital, emergency, long term care, drugs, dental, eye, hearing, mental health, and every other health care type company.
The extremely wealthy will be the only people that can afford their own doctors, nurses, medical equipment and treatment.
What will result, a massive new “black market” of unregulated health care that results in simply horrible results and no accountability.
Kicking the can down the road isn’t, and was not, the right thing to do.
Political influence by Health Care industry, Drug & Pharmacy industry, and Health Insurance providers have had a negative impact on addressing this issue. That has to stop, if there is ever going to be a chance of fixing this.
Start now, for the good of the American people, extend the insurance tax credit premiums for 1 additional year, with the requirement to address the longer term Health Care Industry affordability concerns, and if not enacted within that year – initiate increasing the insurance premiums over the following 5 years to the levels determined and agreed to by Congress – or back to the original tax credit premiums prior to those increased by the Inflation Reduction Act in 2022.
Ruminati 