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alc

(1,151 posts)
9. someone needs to find a better (and bipartisan) plan or ACA is hurt
Sat Oct 26, 2013, 11:33 AM
Oct 2013

The ACA was budgeted long-term in the original legislation but the ACA is NOT a 'non-exempt' program so it is hurt by sequestration. In particular, insurance company subsidies to offset co-pays and deductibles will be reduced. It's doubtful the government can get insurers to eat those loses, especially if they don't get enough signup in the next two months to make the exchanges look profitable in the first place.

The next year is critical for the ACA. Both for exchange customers who need to be happy or will pay the tax next year instead of premiums, and for insurers who could decide it's not worth it to participate in the exchange unless they can REALLY jack up premiums.

Rs know this and have the house for another year. That's not changing and sequestration is "the current law" until congress changes it. [Not sure about this site but it's was high on google results and covers it http://www.massresources.org/sequestration.html and covers it pretty well.]

The Rs are likely to wisen up PR-wise by the next fight (jan/feb 2014). Just like Ds have been saying "The ACA is the law, suck it Rs", the Rs are likely to come out saying "Sequestration is the law, suck it Ds". They don't like the military cuts but can loudly say "we'll fund EVERYTHING - including ACA and all entitlements - according to the current law which had bipartisan agreement." It's hard to say who will win that PR battle but there is potential big trouble for the Ds & ACA - especially if there is dissatisfaction with the ACA early next year (when people are first trying to use their exchange policies).

Obama's in a tough position. Give the Rs something they want so both sides can move forward with some of their agenda. Or have a huge PR fight potentially risking the ACA, and plan to fix all the problems after wining the PR battle and the 2014 house. The big problem is that the ACA may not be fixable after 2014 unless it gets some fixes before then (at the very least, it needs elimination of sequestration).

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Without knowing the nature of reform proposes Shivering Jemmy Oct 2013 #1
ANY entitlement reform we can expect is NOT good news. pangaia Oct 2013 #4
Maybe. Need details Shivering Jemmy Oct 2013 #13
There's no WH position on specifics of any of that. Their hands are totally untied. hooverville29 Oct 2013 #7
Because Sperling Says So? fredamae Oct 2013 #2
OK then, fine, get the WH to disavow it, not dance about 'revenue enhancements, too.' hooverville29 Oct 2013 #8
Goldman guy. seabeckind Oct 2013 #3
what is the White House benchmark for "significant"? hfojvt Oct 2013 #5
There's no WH position on specifically what new revenues or entitlement cuts should be hooverville29 Oct 2013 #6
seems like a lousy way to negotiate hfojvt Oct 2013 #11
I think it was last summer Obama explained his objectives on that bhikkhu Oct 2013 #16
someone needs to find a better (and bipartisan) plan or ACA is hurt alc Oct 2013 #9
Go ahead Obama Administration. 99Forever Oct 2013 #10
He should resign so we can get someone who is not a 1% mouthpiece on point Oct 2013 #12
So Reid's recent big proclamation rejecting cuts was a lie? woo me with science Oct 2013 #14
Maybe just a left-hand, right-hand problem. WH & Senate might not be totally in sync on hooverville29 Oct 2013 #18
We've heard this song before woo me with science Oct 2013 #19
I can't think of an easier way to hand the midterms to the Republicans. n/t winter is coming Oct 2013 #15
kick woo me with science Oct 2013 #17
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