Modern Healthcare

Tax reform should mean improving the economy, but not at the expense of our healthcare system

- By John Rother Interested in submitting a Guest Expert op-ed? View guidelines at modernheal­thcare.com/op-ed. Send drafts to Assistant Managing Editor David May at dmay@modernheal­thcare.com.

When congressio­nal leaders set their sights on comprehens­ive tax reform, the aims were to improve our tax system and create a tax code that suited our country’s economic needs.

This should have meant finding a way to improve the health of our economy—not harm our healthcare.

Instead of bipartisan progress, the current tax reform debate has devolved into an eerie case of déjà vu—echoing this summer’s failed healthcare repeal efforts. Between the Senate’s individual mandate repeal—yet another iteration of “repeal without replace”—and cuts to Medicare and Medicaid, the tax bill, as it stands today, is set to do more harm than good to America’s health.

Right now, America needs constructi­ve congressio­nal action to avoid disrupting the healthcare system and to curb rising costs. Unfortunat­ely, the Senate’s tax legislatio­n would do the opposite—disrupt existing coverage, drive up premiums and lead to drastic cuts to Medicare and Medicaid.

During the decadelong healthcare debate, the organizati­on I lead, the National Coalition on Health Care, urged Congress to pursue bipartisan solutions in healthcare. We have called for reforms that improve our health system and reduce costs through evidence-based policy. Instead, Congress is pursuing across-the-board cuts hidden in a tax bill.

In the individual market today, bipartisan solutions would mean continuing cost-sharing reduction payments and stabilizin­g premiums—without pushing millions off health coverage. Instead, the Senate tax bill’s repeal of the individual mandate would increase the number of uninsured by 13 million and increase premiums in the nongroup market by about 10%, according to the Joint Committee on Taxation and the Congressio­nal Budget Office.

In Medicaid today, bipartisan solutions would mean fostering state innovation, not shifting the cost burden onto states, beneficiar­ies or providers. States are already making efforts to transform their care delivery systems by helping beneficiar­ies remain independen­t in their homes and integratin­g care for lower income seniors and disabled individual­s enrolled in both Medicare and Medicaid. Targeted federal policy has the ability to improve and expand upon these initiative­s.

Unfortunat­ely, in this bill much of the savings attributed to the individual mandate repeal would come from a substantia­l cut in federal support for state Medicaid programs. An analysis of the mandate repeal published recently by the CBO projected those Medicaid cuts would total $179 billion over 10 years.

In Medicare today, bipartisan solutions would mean improving the quality of care and reducing costs while avoiding indiscrimi­nate cuts that harm beneficiar­ies. The Senate-passed CHRONIC Care Act is one example of such an effort, providing vital flexibilit­ies to enable providers and health plans to deploy high-tech telehealth and high-touch personal support to improve care for the chronicall­y ill. The recently announced House Ways and Means Committee deal on Medicare extenders is another strong example. In addition to avoiding disruption to the Medicare program, this agreement funds a permanent fix for Medicare outpatient physical, occupation­al and speech therapy through reforms to post-acute care payment.

Instead of focusing on reforms such as these, Congress is debating a tax bill that would trigger $25 billion in automatic cuts to Medicare starting next year, according to the CBO. If those automatic cuts are waived through future congressio­nal action, the resulting deficits could drive even larger Medicare cuts.

And while Congress has struggled to pass this tax bill despite all its harmful consequenc­es for the healthcare system, it has failed to ensure funding for crucial health initiative­s on which American families depend. The U.S. now faces potential lapses in coverage for kids in the Children’s Health Insurance Program, hiring freezes in community health centers and defunding of scholarshi­ps and loan forgivenes­s for primary-care physicians and nurses in our communitie­s.

Congress should pursue bipartisan solutions to the growing costs of care and abandon efforts to pay for tax reform by slashing healthcare.

 ??  ?? John Rother is president and CEO of the National Coalition on Health Care
John Rother is president and CEO of the National Coalition on Health Care

Newspapers in English

Newspapers from United States