Tag Archive: Romney administration

Romney win unlikely to undo individual market reforms, exchanges

Here’s a good analysis by the Associated Press of how the Patient Protection and Affordable Care Act (PPACA) might be affected by a Romney victory in next week’s presidential election.

In public health insurance, the Medicaid expansion might be curtailed.  In commercial health coverage, payers are hoping for a repeal of the PPACA requirement they maintain minimum loss ratios of 80 percent and new tax levies on insurers.

But insurers aren’t keen on undoing the foundational political bargain of the PPACA’s individual insurance market reforms in which they must accept all applicants for coverage and individuals without other forms of public or private insurance must purchase coverage or face a tax penalty.  There’s simply too much potential new business to be had with the mandate, the AP notes, citing a PricewaterhouseCoopers projection that it and state health benefit exchanges will generate $205 billion in new premium by 2021.

Nor is a Romney administration likely to pull the plug on state health benefit exchanges given the more than $2 billion invested in them thus far in the form of federal planning and establishment grants.  Plus Romney has not publicly renounced the idea of public health insurance exchanges, a concept he innovated as governor of Massachusetts in 2006 by creating the nation’s first state run health benefit exchange, the Massachusetts Connector.

 


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 fpilot@pilothealthstrategies.com or call 530-295-1473. 

Massachusetts health reform template for California — and the nation

Romney aides gave advice on state health care law – SFGate.

This San Francisco Chronicle story is a retrospective on how omnibus Massachusetts health care reform enacted by the Romney administration in the middle of the previous decade became a template for California in 2007 and 2008.  When the California reform effort under then-Gov. Arnold Schwarzenegger faltered in the Legislature amid opposition to the individual mandate and concerns the state could not afford it, the Obama administration subsequently adopted Massachusetts model in crafting its Patient Protection and Affordable Care Act.

Had the U.S. Supreme Court not left the law largely intact last month, California may well have picked up where it left off in 2008 with leading policymakers voicing support for the individual mandate.  However, financing subsidies would have likely proven problematic just as four years ago as the Golden State continues to grapple with chronic budget deficits and high unemployment.

 


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 fpilot@pilothealthstrategies.com or call 530-295-1473. 

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