GOP’s ACA Replacement Faces Fire from AARP and Other Organizations

The repeal and replacement of the
Affordable Care Act could cause
health insurance premiums for adults
age 50 to 64 to rise 25 percent or more.
Photo: Shutterstock

Now that the Republicans have put forward the American Healthcare Act, their replacement for the Affordable Care Act, they’re facing a big hurdle: older Americans who might end up paying a lot more for insurance under their plan.

According to critics from the American Association for Retired People (AARP) and other organizations that represent older Americans, people in their 50s and 60s could see premiums rise by $2,000 to $3,000 a year or more: increases of 20 to 25 percent or higher.

Currently, providers cannot charge older adults more than three times what they charge young adults for the same coverage. But the GOP’s plan would allow that ratio to increase to five times as much, or more if certain states allow it.

One of the main problems is that people under the age of 65 aren’t eligible for Medicare, so they have to find their insurance somewhere else.

In a letter addressed to Rep. Greg Walden, chair of the Energy and Commerce Committee, one of two committees that voted on the bill, David M. Certner, the legislative policy director of AARP, said the proposal would have “a severe impact on Americans age 50 to 64 who have not yet become eligible for Medicare.” Not only that, but it would reduce the amount of financial assistance available for paying those insurance premiums.

After taking fire from both liberals, who are against the repeal, and more conservative groups like the House Freedom Caucus that say the repeal effort doesn’t go far enough, the writers of the American Healthcare Act realized they wouldn’t have enough votes to get the bill through Congress. On March 20, they released a modified version of the AHCA designed to appease those conservative groups, in hopes of getting enough votes to pass the bill through both the House and the Senate.

Under the modified version, states would be allowed to require able-bodied Medicaid recipients without dependents to work, and they would get a funding boost in return for doing so. Taxes on the wealthy and some sectors of the healthcare industry, which were placed by the ACA in order to pay for expanded coverage, would be repealed this year. Republicans also said the changes would allow the Senate to increase subsidies for older people who buy insurance on the individual market, which would in theory offset the premium increases they’ll see as a result of the Affordable Care Act.

However, the AARP is still strongly opposed to the bill. Associations representing doctors, nurses, and hospitals have also come out in opposition.

According to the nonpartisan Kaiser Family Foundation, Americans remain divided on whether or not Congress should repeal the ACA. Fifty-one percent oppose repeal while 45 percent are in favor, according to a survey the foundation conducted between March 6 and 12. But almost half of the respondents thought the Republican alternative will result in fewer people having health insurance.

It remains to be seen what the final outcome of the attempts to pass the American Healthcare Act will be, and how it will affect Americans of all ages.