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House GOP Health Care Proposal Would Make Coverage Unaffordable for Arizonans

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Fewer Available Tax Credits Would Hit Arizona Hard

(Phoenix, AZ) – Arizona would be among the states facing the biggest cuts to tax credits in the nation under the Affordable Care Act (ACA) repeal plan being considered by House Committees this week, according to new estimates released today by the Washington, DC-based Center on Budget and Policy Priorities. Where tax credits would fall by an average of $1,700, or 36 percent, for marketplace consumers across all states, they would fall by an average of $3,548, or 55 percent, in Arizona.

That’s largely because the House plan’s tax credits, unlike those in the ACA, would not adjust for geographic variation in premiums. Under current law, a 45-year old with income of $22,000 could purchase benchmark health insurance coverage for $1,200 or less anywhere in the country. Under the House plan, she would pay at least $5,200 to purchase comparable coverage in Arizona.

The reduction in tax credits would be even more severe for lower-income and older consumers. Older people would also be hit hard by a provision in the House bill that would let them be charged higher premiums, and lower-income people would lose help with deductibles, copays, and coinsurance.

“The House Republican health plan would drive insurance costs so high that many Arizonans could no longer afford it – especially low-income and older people.” said Dana Wolfe Naimark, president and CEO of Children’s Action Alliance. “Arizona’s uninsured rates has dropped from over 20 percent to 11 percent as the Affordable Care Act’s major coverage reforms took effect. Reversing these historic gains and putting Arizona’s health insurance market in jeopardy would be highly irresponsible.”

House Plan Could Destabilize, or Even Collapse, Individual Market

President Trump has promised to replace the ACA with a plan that provides “good coverage at much less cost.” However, the House plan’s severe cuts to tax credits in Arizona would almost certainly result in large coverage losses for low- and moderate-income people. Those coverage losses would be bad for the people losing access to care, but they could also destabilize Arizona’s individual market for everyone. That’s because the enrollment declines could lead to large increases in premiums, resulting in further enrollment declines and further premium increases. The feedback loop could continue until Arizona’s individual market shrank substantially, and coverage for everyone became far less affordable.

House Plan Would End Medicaid As We Know It

The House Republican health plan would effectively end Arizona’s Medicaid expansion under the ACA, under which more than 400,000 Arizonans have gained coverage. It would also radically restructure Medicaid’s federal financing system and cut federal Medicaid funding for states over time. This would quickly squeeze the state budget, and lead to cuts in Medicaid coverage and services for children, seniors, and people with disabilities.

“More than one in three children in Arizona count on Medicaid for affordable coverage that includes check-ups, prescriptions, and treatments kids need. The Republican bill would put all those kids at risk. It would take us backwards on healthy childhoods, behavioral health treatment for kids and parents to keep families strong, and the ability of kids to succeed in school,” said Naimark.

To read the Center on Budget and Policy Priorities’ full analysis of the impacts of the House Republican ACA repeal plan tax credits, please visit the center’s website.

For county-specific data on the impacts of the House Republican ACA repeal plan tax credits, please visit: http://kaiserf.am/2lSCggd.

To learn more about the impact on states of the House Republican plan to radically overhaul Medicaid, please visit: http://bit.ly/2m0sTv4.

Here is a fact sheet on the impact the proposal would have in Arizona. 

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