Recent changes to healthcare policies have cast a shadow over the accessibility and affordability of health insurance in the United States. The repeal of key executive orders by former President Donald Trump threatens the stability of the Affordable Care Act (ACA), commonly known as Obamacare. This legislative shift has placed approximately 24 million Americans, who currently rely on the ACA for their health insurance, at risk of losing coverage. Furthermore, these changes may contribute to increased medical debt and financial instability for both individuals and healthcare providers.
The ACA has been instrumental in expanding Medicaid benefits and providing affordable health insurance to millions of Americans. However, with certain executive orders repealed, including Executive Order 14009, which broadened access for families, the future of these benefits remains uncertain. The repeal of Executive Order 14070, which offered states options to extend postpartum Medicaid coverage, also marks a significant step back in healthcare accessibility.
"The previous administration has embedded deeply unpopular, inflationary, illegal, and radical practices within every agency and office of the Federal Government," – Donald Trump
As a result of these repeals, estimates suggest that nearly 25% of those currently covered by the ACA could lose their insurance. This potential loss in coverage extends beyond just individual repercussions, influencing broader economic dynamics. Hospitals may face increased difficulty in collecting debts from patients who either lose their insurance or face higher premiums. Sabrina Corlette, a health policy expert, underscores the gravity of this situation.
"The consequences of more people going uninsured are really significant, not just at an individual level with more medical debt and less healthy outcomes, but also has ripple effects for providers," – Sabrina Corlette
In addition to coverage losses, Trump's repeals have targeted measures aimed at reducing prescription drug costs for individuals on Medicare and Medicaid. This action compounds the affordability issue, potentially raising premiums for those who manage to retain their insurance under the ACA framework. Corlette emphasizes the financial strain this will cause:
"Premiums go up for the people who do have health insurance. For the people without health insurance, it’s financially devastating," – Corlette
In response to these challenges, the Biden administration had previously introduced the American Rescue Plan Act (ARP Act), a subsidy program that lowered health insurance premiums, enhancing access to coverage. However, this program is set to expire at the end of the year, raising concerns about the sustainability of affordable healthcare options moving forward.
The ACA's weakening could also broaden the pool of debtors from whom hospitals struggle to collect payments. With more insured individuals unable to meet their financial obligations due to rising costs or lost coverage, healthcare institutions may face heightened fiscal pressures.
The White House has notably removed all mention of these plans from its website, signaling a shift in policy priorities. This move highlights the ongoing tug-of-war over healthcare reform between current and past administrations.