Posts Tagged ‘implementation’

Insider: Post-Election Analysis Part Two

Friday, November 19th, 2010

Last week’s Insider addressed the role of the Affordable Care Act (ACA) in the November election. This installment tackles what the election means for ACA implementation going forward.

Preview of Coming Attractions (coming to a Congressional multiplex near you)
The incoming House Republicans have made it clear that they will try to block implementation. We can expect:

– Repeated overall repeal attempts
– Efforts to impede federal regulators via oversight hearings, legislation to block regulations and restricting funding (though probably stopping short of a game of chicken over passing a budget)
– Repeal efforts aimed at selected provisions. These last efforts will be designed to try to force moderate Democratic Senators up for reelection in 2012 either to vote against the ACA or to take votes that can be used for attacks in the 2012 election. (Remember the attack ads claiming various Democrats supported Viagra for sex offenders?)

Repeal — a real threat or a political stunt?
The first question confronting advocates is how to respond to repeal efforts — especially those focused on the individual responsibility requirement. Although they have no chance of passage in the short run, ignoring them would likely prove politically damaging. The goal of putting these forward is twofold: to try to keep the national conversation about the ACA focused on its least popular elements and to make Democratic Senators take tough votes. Even a vote in the Senate that attracts some Democrats, and especially enough to constitute a majority while falling short of 60 votes, will hurt the public perception of the ACA. The ultimate goal of opponents is to get some repeal or rollback measures on President Obama’s desk. By forcing a veto, Republicans hope to paint a picture of an obstinate Obama standing against the popular will. Advocates of reform can’t roll over in the short run if they want to win in the long run — even with House votes that cannot be won.

What about in the longer run? Many analysts do not believe that the individual responsibility requirement is in serious jeopardy because, they argue, repeal is not really in the interest of health care interest groups, particularly insurers.

Of course, it is impossible to be certain, but given their vociferous objections to the requirement, it is hard to see Republicans turning around and saying “just kidding” if they run the table in 2012. Although there may be some cynics in the party who see attacks on the individual responsibility requirement purely in terms of political opportunism, there are certainly many true believers in repeal. In addition, the requirement to purchase coverage becomes unworkable if much of the funding for the subsidies is wiped out (e.g. by restoring funding for Medicare Advantage overpayments or eliminating insurance and other taxes). Trying to implement the mandate without adequate subsidies would likely prove costly at the ballot box.

Also, looking to the first Massachusetts attempt at universal health care in the late 1980s, when business and health care industry groups abandoned their support for reform after the election of a Republican governor, you can’t assume the interest groups that supported the passage of the ACA will stay on course for coverage expansion in a different political environment if they think their bread is buttered elsewhere. You can be sure that the insurers and other interest groups have alternative plans and business models in place to deal with that eventuality.

Past performance is not a guarantee of future returns
So, is the 2010 election a harbinger of doom for health reform? Not necessarily. First off, as we noted last time, the extent to which health reform drove the outcome is being vastly overstated by the incoming House majority. Approximately half of the country wants to see the ACA either implemented as is, or expanded. Constituencies that tend to support the ACA were underrepresented in the 2010 election relative to their participation in 2008 but may return to the voting booth in 2012.

Also, most of the provisions of the law continue to command majority support, making repeal a dubious political proposition. Defenders of the law will have an easier time mobilizing supporters going forward because it is an organizing truism that it is easier to organize against something being taken away than it is to organize for getting the benefit in the first place.

Furthermore, despite their complaining (and piling on to lawsuits) we are likely to see states with conservative administrations moving forward with implementation. Even state administrations that oppose the ACA may be reluctant to gamble on repeal. Failure to move forward on implementation would mean turning crucial state functions like Exchange operation (and access to state Medicaid coverage) over to the federal government. This will create momentum for implementation.

Finally, some of the big whopper lies that opponents have told will be shown to be untrue in the coming year (e.g. that the ACA requires you to pay taxes on the value of your employer-sponsored health benefits). As time goes on, implementation gains steam and more people are helped by the interim provisions, repeal will become less plausible and the claims of opponents will become less credible.

Nonetheless, the ultimate fate of the ACA rests on the results of the 2012 election and on the eventual decision of the Supreme Court. If 2012 results in a Republican sweep, it is highly uncertain whether Democrats in the Senate will have the will to filibuster repeal efforts. Meanwhile, the Supreme Court remains the wild card in the implementation debate. If court prognosticating is your passion, check out the discussion here: http://aca-litigation.wikispaces.com/

Coming up next time: Spotlight on Medicare and Medicaid

– Michael Miller, Policy Director

The Insider: Trick-or-Treat – Top Three Must-Reads of the Week

Thursday, October 28th, 2010

Community Catalyst’s “Insider” is much in demand this week, traveling from one end of the country to the other to provide policy insights on children’s health (at the New England Children’s Health Summit in New Hampshire) and health reform implementation at the state level (at Utah Health Policy Project’s annual conference). While next week Hub readers can expect a robust Insider chock-full of analysis of the implications of the election on the ACA, today we’d like to steer you to some of the Insider’s must-read recommendations:

witch pumpkin

1. Myth-busting around the ACA: Saturday’s New York Times editorial does an excellent job of dispelling many of the myths and untruths about the new health law that have reared their ugly head during this election season.

2. Rebutting a myth in the making: An excellent retort to claims by Tennessee Gov. Phil Bredesen (and others) that the ACA will cause employers to drop coverage, written by Adam Searing, Director of the Health Access Coalition at the North Carolina Health Justice Center. (This is a two-parter; the second blog links to the first.)

3. Beyond the political rhetoric – why the ACA matters to Floridians: An outstanding “what it means on the ground” op-ed from Laura Goodhue, Executive Director of Florida CHAIN.

We encourage readers to share these with partner organizations, post them on websites and disseminate them via social media.

Happy Halloween!

– Kathy Melley, Director of Communications channeling Michael Miller, Policy Director

Photo credit: Empirically Grounded

Health Reform Insider Goes to the Toast and Polls

Tuesday, March 30th, 2010

President Obama signed the final piece of the health reform package today. So before we do anything else and get caught up in the next round of debate, here’s a toast to all those who have worked so hard over the past year to get us this far.

And what goes better with toast than a bill summary?

(We couldn’t think of anything, either.)

So now what?
Congress’s work on health reform is complete (at least for now) but with barely a pause for breath, the hissy fit against reform has continued, merely shifting venue to the states and the upcoming fall elections. Public outreach is still needed, both because a number of provisions take effect very quickly (here they are), and the ongoing smear campaign against reform.

Thirty something
As we mentioned last week, legislators in over 30 states have filed legislative proposals or constitutional amendments regarding health reform. Although there are a few variations on the theme, the main claim is that Congress does not have the authority to impose a tax penalty on people who do not have qualifying health insurance.

And a dozen or so Attorneys General have filed suit against the federal government, claiming, among other things, that it does not have the authority to condition federal Medicaid matching funds on states meeting federal eligibility criteria, because to do so would impose costs on the states. (This is a strange argument, since the federal government has been doing exactly that since the beginning of the Medicaid program.)

Analysts have concluded that the proposed challenges lack legal merit. See:

But merits shmerits. Remember, the goal here isn’t to build sound legal cases but to gin up fervor to elect anti-reform members to Congress (or in the case of the AGs often to get themselves elected to higher office) and create a screen of apparent public opposition to reform for state officials intent on foot-dragging to hide behind.

They may also be trying to force the administration to make a potentially damaging public admission that the individual mandate constitutes a tax—thus violating an Obama campaign pledge.

A dead end strategy?
Given some truly awful recent Supreme Court decisions, no one can afford to laugh at the prospects of litigation, even though most nonpartisan analysts have concluded that they are without merit.

Still, challenges aside, there is reason to be optimistic about the future of reform.

First, the status quo is unsustainable—and more and more civic leaders are recognizing that. Reform opponents have no meaningful alternative that will address the rising costs and rising numbers of uninsured that are undermining the system.

Second, reform does a number of popular things (insurance reforms and subsidies, say) that will be not only be difficult to undo, but also difficult to separate from some of the less-popular aspects.

Third, reform creates more winners than losers among interest groups. There are not that many stakeholders who have a vested interest in repealing (not to be mistaken for amending) key parts of reform. Hospitals, doctors and drug companies can all find provisions they do not like but on balance, the extension of coverage to more than 30 million people will be good for the health care industry. States have concerns about the cost of the Medicaid expansion, but the expansion is 100 percent federally-financed in the short run, and provisions like increasing the Medicaid drug rebate rate will reduce state costs.

What about businesses? Although some may have concerns about the “free rider” provisions, only a very small percentage of employers will actually be subject to any penalties (The Congressional Research Service estimates only about 5 percent).

So too with the individual mandate. Most people already have private or public insurance or would voluntarily purchase coverage once a subsidy is available. The mandate is a tool to ensure the broadest possible risk pool and to prevent people from churning off and on health insurance on an as-I-need-it basis.

But if Massachusetts is any guide, the mandate will (notwithstanding the political furor of the moment) be, in practice, fairly acceptable to the general public.

Even the insurance industry, which spent millions to defeat reform, may think twice before getting behind a repeal effort. Especially since if the effort is only partly successful, it could be left with new requirements to cover high-risk and high-cost individuals without the guarantee of a bigger and on average healthier subscriber base.

And it looks, early on anyways, that public opinion is swinging toward reform.

This may be the case in part because broadstroke polling has always overstated the opposition—polls and stories before reform passed often failed to break out the anti-reformers from those who were unhappy with the current bills because they wanted reform to go further.

But new post-reform polls (check out this Five-Thirty-Eight post) that have gone deeper show an upward trend of support for reform.

Those, for instance, who say the law is a step in the right direction are unlikely to see repeal as anything but two steps back.

The question becomes: How much of the public can be made to believe things that are not true about health care reform—and for how long—now that it is law?

And here, there’s some cause for concern that goes beyond the persistent misunderstandings of what is in the law. A recent Harris poll shows 23 percent of adults in the US (41 percent of Republicans) think that President Obama wants to use an economic collapse or terrorist attack to assume dictatorial powers, and 24 percent of Republicans think President Obama may be the anti-Christ. We may surmise that these folks are unlikely to be persuaded on health care no matter what advocates (or anyone else) says or does.

On the other hand, as Nate Silver noted in the above link, public support seems to be going toward reform, though it is too soon to say whether this is a long-term trend.

The best thing advocates can do is go out and explain what reform really does (and what it doesn’t do). The more public understands reform, the less support there will be for a rejectionist agenda. Reaching out to constituencies that will benefit from early improvements (again, check out our Quick Win fact sheet)—including seniors, small businesses and children and adults with pre-existing conditions—are a good place to begin.

Seniors have generally been more opposed to reform than most age groups, and opponents have consistently claimed that reform is bad for Medicare. The first changes that seniors will see is the beginning of a phase out of the doughnut hole and new preventive care benefits in Medicare.

Many small businesses are probably unaware that they are exempt from “free rider penalties” or that the new law includes an immediate tax credit for small, low-wage businesses that offer health insurance.

For children and adults with major or chronic conditions, the bill has provisions to, immediately eliminate pre-existing conditions for children (pending HHS regulation), allow young adults to remain on their parents’ plan, eliminate lifetime benefit caps and create (or enhance) a high risk pool, and will provide immediate benefits for children and young adults with special health care needs.

Implementation: a three-piece puzzle

Going forward the keys to successful implementation include:

-An aggressive effort to build public support for reform

-Engagement at the state and federal level around the state laws and state and federal regulations that will govern the details of implementation

-Maintaining and strengthening the Medicaid program during the interim period when the states’ fiscal crisis is still squeezing the program and new federal coverage rules have not yet kicked in.

We’ll look at the way these three interlocking pieces fit together and developments in the weeks ahead.

–Michael Miller, director of strategic policy