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Wednesday, Feb 15 2017

Full Issue

Math For Insurance Only Adds Up If Healthy Subsidize The Sick, Expert Says

Economist Jonathan Gruber, who worked on both the Massachusetts and federal health overhauls, joined other health experts on a panel looking at the obstacles Republicans will face when trying to craft something that's less expensive but still ensures people have access to coverage. Meanwhile, actuaries offer their take on stabilizing the marketplace.

None of the health care reform plans currently under discussion in Washington address the critical issue of paying for coverage for sick people, according to an MIT economist who had a hand in crafting the federal Affordable Care Act. ... [Jonathan] Gruber said health coverage could be expanded without an individual mandate if there was a reinsurance program instead that paid insurers for covering sick people. 鈥淭hat could work, if you spend enough money,鈥 Gruber said, 鈥淏ut we鈥檙e going to have to increase the deficit to do that.鈥 The math of insurance, he noted, doesn鈥檛 work unless lower-cost healthy people subsidize coverage for sicker people whose care is more costly. (Dayal McCluskey, 2/14)

Congressional Republicans working on rewriting rules for the struggling individual insurance market might want to study five different reform proposals chosen as finalists in a national competition among actuarial professionals. (Meyer, 2/15)

In other news聽鈥

Following an executive order from President Trump to 鈥渕inimize the economic burden鈥 of the Affordable Care Act, the Internal Revenue Service said it is backtracking on its plan to reject 2016 tax returns that do not indicate whether the taxpayer complied with the act鈥檚 individual mandate. Supporters of the act, which is known as Obamacare, fear this behind-the-scenes change could undermine enrollment in health insurance. (Pender, 2/14)

If the debate in Washington over the future of Obamacare seems distant and abstract, a network of health foundations in Pennsylvania seeks to make it close and clear, at least statistically. The Pennsylvania Health Funders Collaborative, which supports the Affordable Care Act, drills down to the local level,聽detailing the impact by county, hospital, and congressional district聽(the elected representatives who will decide the issue). (Sapatkin, 2/14)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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