It took some effort, but the House passage of the AHCRA is a major step toward applying common sense to the health care industry and the related health insurance coverage of health care consumers.
As designed, the ACA was nonsensical, with passing on the higher costs of people with pre-existing conditions and the elderly to the younger and healthier segment of the population. That’s not insurance the young and healthy were buying, it was the young and healthy subsidizing less healthy and the elderly. In other words it was a senseless redistribution of income, but the ACA picked the less able and generally less wealthy to subsidize higher risk fellow citizens, which is simply nonsense.
If you have a population segment that needs financial assistance, why not use public assistance programs, instead of selecting the young, who are frequently getting started in life to pay a share of the higher cost of living for older and less healthy people?
There was much more involved in the AHCRA that I will discuss in a later blog.
Philip A. Erickson, CPA