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Republican alternative ACA plan: 5 takeaways

tracey walker | managed healthcare executive | 29 june 2016 

PA's Bret Schroeder, healthcare expert, is quoted in an article in Managed Healthcare Executive. The article discusses key takeaways from the GOP's recent alternative plan to the Affordable Care Act (ACA). 

Commenting on this topic, Bret explains: While Democrats immediately criticized the plan, the plan is an attempt to rectify some of the unintended consequences by the ACA and return power and decision making to the states.”

Bret continues: Many believe that while there are many positive aspects of ACA, the plan oversteps its bounds and imposes undue financial implications that were not clearly thought through before the plan was passed into law. ACA has been criticized by many because healthcare premiums as well as copays have continued to escalate and have not delivered on the promise of ‘making healthcare more affordable.’”

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Bret expounds further, stating: The insurers have lost money in the exchange market to the point where they have either dropped out completely or increased premiums and copays across the base. These increases have put financial strain on families causing many to skip not only doctor visits for treatment, but also routine preventative care visits.”

Bret adds: “At first, ACA picks up the first three years of benefit costs for expansion. But in 2017, states begin to shoulder a larger and larger share of these benefit costs. For some states, Medicaid costs are currently 20% of the state budget—this expansion puts additional pressure on already strained budgets. To compound this financial burden, the administrative costs will rise to manage these expanded programs. Some estimates place the administrative burden as high as $12 billion by 2020.”

Bret concludes: “I expect this to not only be an issue in the upcoming presidential election, but also a key challenge at the state level.”

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