Trump’s Executive Order, Ending of Cost Sharing Reductions, and Roll Back of No-cost Contraception Will Rob Millions of Their Health Care
With the recent defeat of Graham Cassidy and the Affordable Care Act (ACA) repeal efforts that preceded, we thought the battle to save our health care was won.
Unfortunately, yesterday President Trump demonstrated unequivocally that this battle is far from over—he is directly attacking women, the middle class, and the poor in his effort to strip millions more from having necessary access to health care in order to provide tax breaks for the wealthy and powerful.
Rights & Democracy stands in opposition to Trump and the GOP Congressional leadership’s inhumane and immoral attack on the health care of hundreds of thousands of Granite Staters and millions of Americans. We stand in support of our members of Congress (see Sen. Maggie Hassan’s statement and Sen. Jeanne Shaheen’s statement) in their resistance to these proposals and we call on Governor Chris Sununu to do the same.
Last night the President announced that he will end Cost Sharing Reduction (CSR) payments that lower costs for more than 6 million people who buy coverage on the exchange. Uncertainty about the future of these CSRs is key reason that many insurers are substantially hiking their rates for 2018—some by more than 20 percent. Some insurers have also left the market. Even Republicans are worried about how this decision will drive up costs and leave millions uninsured.
In addition to the elimination of CSR payments, Trump issued a new executive order that allows health association plans to sell watered down health coverage that doesn’t meet current standards under the ACA. This executive order includes provisions like those in the ACA repeal bills that were roundly rejected earlier in the year by both lawmakers and the public. Trump’s order loosens up rules for insurance companies so that they can go back to refusing coverage for people with pre-existing conditions, charging them more for their coverage, and selling bogus plans that don’t even include essential health benefits like maternity care, mental health and prescription drugs that are required for plans sold in the ACA marketplaces. These plans could even have lifetime and annual benefit caps.
Waiving ACA protections means these plans can cherry pick young, healthy consumers and pull them out of the existing individual health insurance market, leading to a market dominated by older and sicker people. That means that rates will skyrocket, insurers will flee, and, ultimately, the entire private health insurance market could collapse.
Finally, the Trump Administration has launched a full on assault on women’s reproductive health with a sweeping new rule that eliminates free contraceptive coverage based on any religious or “moral” objections from the employer. This is a significant departure from the existing law, which allowed exemptions for religious employers like churches and Catholic hospitals only. Under the new rule, any employer, not just religious ones, can deny coverage for birth control based on their own personal religious beliefs or “moral” objections.
Through the ACA, employers were required to include no-cost birth control coverage in their health insurance plans. More than 55 million women have access to birth control without co-payments because of that guarantee – saving them $1.4 billion in 2013 alone. But now these 55 million women could lose access to free contraception if their bosses decide they suddenly have a “moral” objection to paying for it. As a result, millions of American women and families could be left without affordable birth control.
The eliminations of CSR payments, the executive order on health association plans, and the new rule denying contraceptive coverage to millions of women, all make it clear: Trump doesn’t care about the will of the people who have rejected the Republican agenda for health care over the past several months.
Instead of listening to Americans, Trump is charging full-steam ahead with his stated goal of ACA repeal through a political campaign to sabotage the ACA by forcing premium increases, creating instability in the market, actively interfering with the ability of consumers to sign up for coverage, and rolling back the no-cost birth control for 55 million women.
When coupled with the Republican budget proposal working its way through Congress now—which includes massive cuts to Medicaid and further privatizes Medicare—Trump’s sabotage would mean the destruction of our health system as we know it. We will return to the days when being sick could bar you from coverage. We will return to the days when being a woman meant discrimination in the health care system. And we will see Medicaid and Medicare—two programs essential to the quality of life of millions of Americans—irreversibly transformed leading to access and lower quality care.
And what does Trump and his GOP backers in Congress gain from robbing millions of their health care? Huge tax breaks for corporations and the wealthiest Americans.