Affordable Care Act (Obamacare) - AEI

Affordable Care Act (Obamacare)

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If the economy charges ahead as investors are anticipating, the Senate and House Democrats who voted against the bill may soon be looking for jobs as lobbyists.

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If Democrats have their story right, those tricksy Republicans are masterfully executing a not-so-secret plan to wreck the American social welfare state.

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While there is agreement about the need to make changes in Medicare to improve the efficiency of service provision, the only option is not further reliance on regulatory pressure. An alternative approach would harness the power of economic incentives to drive higher productivity in the health sector.

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health care medical insurance

For the third consecutive year, national health spending has outpaced economic growth. Congress should take steps sooner rather than later to provide stronger incentives for cost discipline throughout the entire health system.

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If Republicans end the mandate in the tax bill, any estimates of the effects of future legislation on coverage will be about 13 million lower. The tax bill doesn’t just advance a major conservative objective on health policy. It prepares the ground for replacing other parts of Obamacare as well.

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James C. Capretta speaks at the 2017 Southern California State of Reform summit.

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Because the individual mandate was one of many features enacted at the same time, we couldn’t easily tell what effect it had on insurance numbers in isolation. But we may soon have the natural experiment we need to evaluate it.

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Some observers are describing the repeal of the mandate as a tax increase. In reality, the repeal is a tax cut, though not a sensible one.

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Republicans are right to ignore, for now, the potential effects of the pay-as-you-go act on their tax legislation, as they had no role in the enactment of the law in the first place and can fix the problem later.

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To find out what we know about Medicaid’s effectiveness, I spoke with AEI health care wonks James Capretta and Ben Ippolito about the relevant research.

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