US health plan under threat

A NON-PARTISAN report expected as soon as yesterday on the costs of a Republican plan to replace the Obamacare health care law could harden opposition to the proposal, adding to the obstacles facing President Donald Trump’s first major legislative effort.

The Congressional Budget Office (CBO), which provides official cost estimates for legislation, is widely expected to find the Republican plan will result in fewer Americans with health insurance than under the Affordable Care Act, former Democratic president Barack Obama’s signature domestic legislation.

Just days before taking office in January, Trump promised “insurance for everybody” in his Obamacare replacement.

House of Representatives Speaker Paul Ryan, the Republican health care plan’s top backer in Congress, acknowledged on NBC’s Meet the Press programme on Sunday that the CBO projections would likely show a decline in insurance coverage because the legislation would drop an Obamacare provision mandating that Americans obtain health insurance or pay a fine.

“The one thing I’m certain will happen is CBO will say: ‘Well, gosh. Not as many people will get cove Ryan said. “You know why? Because this isn’t a government mandate.”

Ryan added the Republican plan would lower health care costs and allow more people to afford coverage if they want it. He said he expected the CBO report yesterday or today.

The House Republican legislation would also roll back an expansion of Medicaid insurance for the poor, and replace Obamacare’s income-based subsidies with a system of fixed tax credits to help people buy private insurance on the open market.

The credit rating agency Standard & Poor’s has estimated six million to 10 million people could lose health insurance under the Republican plan, known as the American Health Care Act.

It would cancel tax revenues worth at least $600billion (R7.9-trillion) over 10 years.

The CBO report is needed to determine the full budgetary impact of the legislation – whether the savings from the Medicaid cuts and lower subsidy costs are enough to offset the loss of tax revenues.

Republicans have long opposed Obamacare, saying it was government overreach and led to higher insurance premiums. — Reuters