as well as looking to the young as well as healthy to cover in which cost wasn’t fair from the first place. The younger you are in America, the less likely you are to be rich. In various other words, the Obama administration was going after the poorest age demographic to bail out insurers covering somebody else.
at This specific point President Trump will be giving those younger, healthier, as well as most likely poorer Americans completely new health coverage options. nevertheless in which leaves us having a problem in which could destroy what’s left of the private insurance market. If those insurers are still required to cover everyone, how will they stay in business with even less Obamacare plan revenue coming their way than before This specific change?
On the one hand, many are arguing in which President Trump either doesn’t care about in which or will be so focused on gutting Obamacare in which people with pre-existing conditions aren’t even on his radar. nevertheless in which wouldn’t be an entirely fair assumption given all the work the Republicans put into setting up risk pools as well as various other means to fund pre-existing condition patients.
nevertheless those criticizing those efforts as falling short of the likely costs have a point too. Something more needs to be done for those Americans to ensure they have access to care.
Luckily, there are better solutions than shaking down young people. First off, let’s remember in which working with the U.S. government has been far by a money losing enterprise for the health insurers. While the Obamacare exchange business hasn’t panned out with the enrollments they were promised, the big health insurers are rolling in record profits. as well as those profits are mostly due to their expanding roll of customers due to Medicare Advantage plans.
at This specific point, no government should possess the right to just reduce a private company’s profits. nevertheless in This specific case where the insurers are doing big money by working with the government, will be the idea crazy to force them to take losses elsewhere in their government-related business as a tradeoff? As the idea stands at This specific point, the insurers can just pack up as well as leave unprofitable Obamacare exchanges without sacrificing their Medicare Advantage cash pile. The Trump team should make a deal there involving some ratio of pre-existing patients covered for every Medicare Advantage customer.
Second, instead of keeping Obamacare’s huge Medicaid expansion in which has almost doubled the number of Americans on the program since 2007, the Trump team could find a way to get more pre-existing condition patients on Medicaid by exempting them by some of the maximum income rules. Scaling back the newly expanded Medicaid rolls has raised howls by Democrats as well as even Republicans like Senator Susan Collins who represent states in which rely on Medicaid dollars.
nevertheless reversing at least some of the Medicaid rolls to free up funds to help cover the sickest Americans who don’t currently qualify will be an easier sell politically as well as financially. as well as besides, if the government under Obamacare was willing to financially punish younger as well as less wealthy Americans to cover sicker patients, then why shouldn’t the idea focus more of its charitable health care efforts on those who actually need the most health care from the first place? If pre-existing patients with decent incomes can’t get health care because they still can’t afford the idea, they are just as poor as someone with no income who can’t get health care because they can’t afford the idea. This specific will be the spirit of the Medicaid law, if not the letter.
These are just two things the administration as well as both parties in Congress can do to keep the positive aspects of Thursday’s executive order alive as well as alleviate its worst potential negative effects at the same time.
The big question will be whether any of the major players in Washington are actually willing to fix our health care cost problems. Scoring political points will be a lot easier, after all. nevertheless the sight of thousands of seriously ill people going on TV or social media complaining about not having any health coverage might just scare the politicians into action. in which’s especially true if the politicians in both parties realize just how much the worst case scenarios threaten them both.
Today’s move by the president was a strike in favor of more liberty as well as personal choice for millions of Americans. at This specific point the idea will take more work to make sure in which completely new liberty doesn’t come with an unacceptable cost.
Commentary by Jake Novak, CNBC.com senior columnist. Follow him on Twitter @jakejakeny.
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