Supercommittee Can’t Afford to Keep PPACA Intact
On Tuesday, Politico reported that PPACA will likely be spared by the Supercommittee. Economists and politicians on both sides of the aisle have repeatedly stated that health spending must be contained in order to get a handle on spending. The refusal to ax or alter PPACA is an indication that the group is not serious about deficit reduction.
Certainly, Democrats would argue that PPACA will contain health spending--just look at the ACOs and pilot projects! Not to diminish the potential of ACOs and other innovative models to reduce healthcare costs, but it’s just that-- potential. At best, scoring long-term savings from alternative payment models and alternative delivery models is an estimate; at worst, it’s a shot in the dark.
The enormous spending increases for PPACA provisions such as the Medicaid expansion and subsidies for coverage in the exchanges are easier to quantify. Although disagreement exists over just how many Americans will have their insurance covered by taxpayers, no one expects it to come cheap. According to an analysis by Jim Capretta and former CBO director Doug Holtz-Eakin, delaying implementation of PPACA for 4 years could save $300 billion.
If not through changing PPACA, how will the Supercommittee have any chance of reforming the Medicare SGR, which, if left untouched, will result in a paralyzing 30 percent cut to physician reimbursement in 2012? Sadly, they will likely follow Obama’s leadership on that issue, which is to ignore this disastrous policy and let others deal with the complicated and thankless job of fixing it.
Politico quotes SEIU’s Peter Colavito’s response to the Supercommitte’s treatment of the PPACA who remarks, “It just shows there’s a deep consensus in the country that the current health care system needed to be reformed and that the ACA is a step in that direction.” Deep consensus? Clearly he’s not aware of the recent polling data showing a drop in support for PPACA, particularly among Democrats. The dismal Congressional approval rating of 9 percent (which is lower than approval for polygamy or pornography) makes it clear a consensus does exist, but it is not in favor of current policy. The American people expect politicians to stop shirking responsibility and make responsible, if difficult, decisions to ensure the fiscal stability of the country. The Supercommittee is running out of time to meet that expectation.
