President-elect Donald Trump has made repealing President Barack Obama’s signature healthcare law the “first order of business” and intends a smooth transition to a “market-based” medical insurance system, Vice President-elect Mike Pence on Wednesday.
The Patient Protection and Affordable Care Act specifically kept intact the nation’s private medical insurance system that covers the bulk of Americans under age 65. The Affordable Care Act intervened in the private market with its managed competition-based approach, but by no means replaced it. It strongly intervened on both the sell and buy sides of the individual health insurance market in an attempt to rescue the segment from an adverse selection death spiral and restore it to healthy functioning. Doubts have been raised as to whether the rescue effort would have succeeded as premium rates rose and fewer plans were offered for plan year 2017. By the same token, rescinding the individual market reforms aren’t likely to restore it to health either given its deeply problematic nature.
Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email