H.R.1275 - World's Greatest Healthcare Plan of 2017

The name of this bill is certainly full of itself but do the contents live up to the name?

The bill is extensive. Due to its complexity and multiple references to large portion of US Code I will base my analysis on the summary provided for the bill about its intent and actions.

1) Stated: "This bill amends the Internal Revenue Code to repeal the requirements for individuals to maintain minimum essential coverage and for large employers to offer affordable coverage to full time employees."

Meaning: Individuals will once again be able to gamble with their health by sacrificing health insurance to pay for other things. It also allows large employers to deny health benefits to their employees. Considering employers often obtain better deals on insurance by enrolling in group health care plans this will likely result in greater costs to their employees wishing to maintain their health benefits.

2) Stated: "Health insurance is no longer required to cover preventive care at no cost or include the essential health benefits."

Meaning: A greater number of people will postpone preventative care for financial reasons resulting in increased long term medical complications and costs. Also, insurers will be allowed to cut costs by offering plans that do not provide for the whole body care of an individual. This includes removing provisions for things such as prenatal, labs, pediatrics, etc.

3) Stated: "Individuals enrolling in health insurance who have not maintained continuous coverage over the previous 12 months are charged an extra 20% on premiums for each consecutive year without coverage, unless the individual is subject to similar state incentives to maintain coverage."

Meaning: This measure appears counterproductive as those who have already suffered a lapse of coverage will now face a significant financial burden when they are ready to regain health insurance. Instead of encouraging people to maintain coverage from the start this will only discourage people from re-enrolling once they are in a financial position to do so.

4) Stated: "States may enroll uninsured residents in high deductible health plans. Individuals must be permitted to opt-out of this coverage."

Meaning: States may offer residents emergency only health plans which provides no incentive for individuals to maintain regular preventative care and are likely to result in increased long term medical complications due to the postponement of treatment for financial reasons.

5) Stated: "The Department of Health and Human Services (HHS) must develop a risk adjustment mechanism for health insurance in the individual market."

Meaning: Helps offset costs to insurers providing coverage for high risk individuals

6) Stated: "For residents of a state to qualify for premium subsidies or the health insurance tax credit in this bill, the state must permit health insurance with an annual limit on benefits to be sold on its exchange."

Meaning: Allows insurers to put an annual cap on benefits which negatively effects those with severe or chronic illnesses requiring expensive treatments or medication. States are forced to allow this if they wish for their residents to receive federal subsidies and tax credits.

7) Stated: "The bill establishes an advanceable, refundable health insurance tax credit for taxpayers enrolled in coverage that does not cover abortion except in certain circumstances."

Meaning: Gives a monetary incentive for taxpayers to enroll in plans that do not cover abortion.

8) Stated: "States may: (1) apply to HHS to use unclaimed health insurance tax credits for indigent health care; and (2) enroll Medicaid-eligible individuals in health insurance that qualifies for the tax credit instead of in Medicaid, at the individual's option."

Meaning: Part one is absurd in that, if all the credits are claimed, there will be no funds for states to provide indigent care. Part two gives residents an option between Medicaid and traditional health insurance but may fail based on the quality of coverage provided

9) Stated: "The tax on excess health benefits (commonly called the Cadillac tax) is repealed."

Meaning: Removes the additional tax on most expensive health plans.

10) Stated: "The bill establishes Roth HSAs (health savings accounts) for paying certain medical expenses and health insurance premiums."

Meaning: Health Savings Accounts are commonly encouraged as a way to offset the costs of insufficient insurance however for low income individuals who do not have the capability of putting funds aside in advance this is an impractical measure.

11) Stated: "The tax deduction for medical expenses is eliminated."

Meaning: Those who spend a large amount of money out of pocket for medical expenses will no longer be able to recoup some of those costs at tax time. This, once again, will negatively impact low income individuals with little or no insurance who suffer a medical hardship.

12) Stated: "This bill amends title XIX (Medicaid) and title XVIII (Medicare) of the Social Security Act, including to turn federal Medicaid payments into block grants."

Meaning: Turning Medicaid into block grants will mean the disbursement and administration of said funds will be entirely in the hand of the States. This reduces the consistency and accountability of the Medicaid program.

Taken as a whole, there are a few good things found in this bill but overall it will disadvantage low income and chronically ill individuals while providing greater profits to insurance companies. I rank this bill better than Trump's proposal but definitely not what America needs.