The Republican plan to repeal the Affordable Care Act (ACA), or Obamacare, was filed in Congress on March 6.
The official title of the Republican bill is the American Health Care Act (AHCA), but D. Taylor, president of UNITE HERE, is calling the new bill “Trumpcare.”
When the bill was introduced, labor unions condemned it as a gift to the rich paid for by the working class.
One week after the bill was introduced, the Congressional Budget Office (CBO) released its analysis of Trumpcare. The CBO analysis confirms that the unions are right.
The New York Times reports that according to the CBO analysis, Trumpcare cuts taxes on the wealthy and corporations by $1 trillion over the next ten years.
Those taxes help pay for federal subsidies that made health insurance affordable for many workers.
Trumpcare eliminates the subsidies, putting affordable health care out of reach for millions of workers.
It also reduces Medicaid funding by $880 billion and caps the growth of future funding. The reduction and cap will cause millions of low-income workers to lose Medicaid coverage.
“This isn’t a health care plan, it’s a shameful handout to corporations and the wealthy paid by working families who will pay for the tax cuts with less coverage,” said Chris Shelton, president of the Communications Workers of America (CWA) when the bill was first introduced.
“President Trump and the Republican Party ran on a promise to immediately repeal the ‘broken’ Affordable Care Act and replace it with something ‘great’,” said Taylor. “Instead, what was unveiled by House Republicans is a plan that slashes health care coverage for millions of Americans.”
Taylor made his statement before the CBO released its analysis.
If anything Taylor may have underestimated the number of people who will lose coverage.
The CBO analysis states that the Trumpcare will cause 24 million people to lose health care coverage over the next ten years. Fourteen million will lose coverage within a year of its passage.
One reason that workers will lose health care insurance is that Trumpcare eliminates Obamacare subsidies for purchasing health insurance and replaces it with tax credits.
But the Trumpcare tax credits are less generous than Obamacare subsidies and don’t increase as the price of health insurance increases.
Additionally, Trumpcare would allow insurance companies to charge older workers much more than younger workers, but tax credits for older workers will be the same as younger workers.
Trumpcare would also phase out the Obamacare expansion of Medicaid, which made Medicaid available to many more low-income workers.
Trumpcare also changes the nature of Medicaid, which would no longer be a government benefit for workers who meet certain income requirements.
Instead, the federal government would provide grants to states. The states would determine eligibility rules and the level of benefits.
If the federal grant does not cover the cost of everyone who is eligible, benefits would be rationed. Some would get them; others wouldn’t.
“Trumpcare will gut Medicaid expansion and subsidies that have made lifesaving health care available to millions of Americans,” said Taylor.
Trumpcare could also cause employers to drop health insurance benefits for their workers.
Forbes reports that up to 7 million workers could lose their employer-based insurance benefit because of Trumpcare.
One of the reasons that workers may lose their employer-based health care benefit is that Trumpcare maintains the Obamacare excise tax, a 40 percent tax on employer-based health insurance whose premium costs exceed the national average of health care premium costs.
The high cost of the excise tax could cause some employers to drop employee health care insurance. Others may cut benefits to avoid the tax.
The excise tax would especially hurt union workers, who through years of struggle have won good, affordable employer-based health care insurance.
By maintaining the excise tax, Trumpcare “will drive up already skyrocketing out-of-pocket costs and drive down coverage for the vast majority of Americans under age 65—more than 177 million—who get health insurance through work,” said Taylor.
RoseAnn DeMoro, executive director of National Nurses United (NNU), also joined the chorus of union leaders criticizing the anti-working class nature of Trumpcare.
“The principal effect of the new bill will be the loss of existing health coverage for tens of millions of people, without any restraints on health care industry pricing practices that add up to massive health insecurity for the American people.” writes DeMoro writing for Common Dreams.
Health care in the US can’t be fixed, continued DeMoro until “our broken, dysfunctional, profit-focused health care system (is replaced by) an improved Medicare for all system,” which would expand Medicare so that it covers everybody.
DeMoro writes that NNU is building grassroots support for a single-payer health care plan like Medicare in the state of California “that could become the national model (for) an alternative to both the ACA and the fraudulently named GOP American Health Care Act.”