We Finally Know What’s Going to be in the Senate Version of Trumpcare — and It’s Not Pretty

Judd Legum

Judd Legum Editor-in-Chief, Think Progress

For weeks, Senate Republicans have negotiated their version of Trumpcare in near total secrecy. There have been no public hearings — just private meetings among a select group of Republicans about a bill that could reshape one-sixth of the American economy. For many Americans, the contours of the bill could be a matter of life and death.

Text of the bill was released on Thursday, but key details began to leak Wednesday night (some from lobbyists who learned about the bill before the American people). Majority Leader Mitch McConnell (R-KY) is insisting on a vote before the July 4th holiday, which means everyone has a week to learn about this bill — including many of the senators who will be voting on it.

So let’s get started. Here are the most important things you need to know.

The bill would strip health care coverage from millions of low income Americans by rolling back the expansion of Medicaid — and then making even deeper cuts.

The core of the Senate bill, like the House version, is a massive cut to Medicaid, which millions of low income Americans rely on for health care coverage. The Senate bill will reportedly phase out the expansion of Medicaid under Obamacare, although the process won’t start until 2021. In the end, the impact is the same. The Congressional Budget Office found that rolling back Medicaid expansion would cost 14 million people their health insurance.

But the Senate bill makes even deeper, more dramatic cuts to Medicaid that, over time, would leave more low income Americans without health coverage. Instead of a program that pays for health coverage for people who need it, the House and Senate versions of the Republican health care bill place per capita caps on the program. In other words, the federal government will only send states, who administer the program, a certain amount of money no matter what the actual cost of care may be.

The Senate version, according to a report in Bloomberg, makes even deeper cuts than the House.

The House bill ties these per capita caps to the “growth rate of medical inflation (CPI-M) plus 1 percentage point.” The Senate version, however, ties caps to the general rate of inflation (CPI-U). Since medical costs consistently grow at a much faster rate than overall costs, this means states would receive a smaller and smaller percentage of the actual cost of care each year.

The bill would follow the Obamacare subsidy model, but help fewer people.

In the House version of the Republican health care bill, people receive premium subsidies based on their age. The Senate bill retains the Obamacare model where subsidies increase as incomes go down.

But while Obamacare provided subsidies to anyone making up to 400 percent of the poverty line, the Senate bill ends subsidies at 350 percent of the poverty line. This means fewer people will get help. For some people, the impact of this change could be dramatic.

The Senate bill is a massive tax cut for the rich.

At it’s heart, Trumpcare is less a health care bill than a tax cut bill. There was speculation that the Senate bill would leave more taxes in place, but it will largely mirror the House version, according to the Washington Post.

The Senate bill will repeal hundreds of million of dollars in taxes that Obamacare used to help more people afford health care providing a massive transfer of wealth to people with incomes over $200,000.

 

CREDIT: Urban Institute

The bill will mean higher out-of-pocket medical costs for many people with insurance.

Republicans would like to reduce health care premiums. But the only mechanism to do so in the Senate bill is to allow insurers to provide fewer benefits. That means, for some people, premiums may be slightly lower. But those same people will end up with far greater costs if they do get sick.

The Senate bill will reportedly give “states more leeway in opting out of the ACA’s insurance regulations through expanding the use of so-called ‘1332’ waivers already embedded within the law.” (The House bill creates a new waiver program.) The waivers are not expected to allow states to let insurers reject or charge more to people with pre-existing conditions. But the waivers will let states allow insurers to offer skimpier plans, potentially leaving consumers with huge medical bills.

The bill also reportedly changes what percentage of costs, on average, an insurance plan must cover from 75 percent to 58 percent. This means more deductibles and out-of-pocket expenses. The Senate plan could increase these costs by 68 percent.

The bill will seek to limit the ability of insurers to provide coverage for abortions.

Senate rules may prevent the Republican health care bill from including explicit restrictions on coverage for abortion. The Senate is exploring an arcane way to limit abortion coverage anyway, according to Axios. The Senate may create a “stabilization fund” that insurance companies can tap into through the Children’s Health Insurance Program (CHIP). Most insurers will want to take advantage of this fund. But CHIP already has a restriction on abortion coverage. So insurers that take advantage of the stabilization fund will not be able to include coverage for abortion.

The bill will hit older Americans especially hard.

Across the board, older Americans who use the exchanges will be expected to pay a larger share of their income for health insurance. Those who make over 350 percent of the poverty line will now be expected pay full price.

Trumpcare’s passage is far from certain, with a number of moderate and conservative Republicans raising objections. Conservatives are likely to balk at keeping the basic Obamacare subsidy structure. Moderates are likely to object to the aggressive Medicaid cuts, particularly in states that have expanded Medicaid.

Posted In: Allied Approaches

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work