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Statement of ACAP on Passage of Tax Bill
FOR IMMEDIATE RELEASE: December 20, 2017
FOR MORE INFORMATION: Jeff Van Ness, (202) 286-4683; jvanness@communityplans.net
STATEMENT OF ACAP ON PASSAGE OF TAX BILL
WASHINGTON—Margaret A. Murray, Chief Executive Officer of the Association for Community Affiliated Plans (ACAP), today made the following statement on the passage of the Tax Cuts and Jobs Act, which includes a repeal of the individual mandate for health insurance and, without subsequent Congressional action, would force future cuts to Medicaid and Medicare.
“This tax bill will inflict lasting damage to our health care system.
“Its reduction of deductions for state and local taxes, and ladling on of an additional $1 trillion in debt, will put severe pressure on publicly-sponsored health coverage programs such as Medicare and Medicaid in the future – and will trigger automatic cuts to Medicare in the short term, absent further action from Congress.
“The repeal of the individual mandate provision ignores recent experience. State after state—New Jersey, Iowa, South Dakota, Washington, among others—have all tried guaranteed issue without a mandate. It failed every time. As it now stands, healthy consumers may have an incentive to leave the Marketplaces. Without further action, it will fail here, too—creating adverse selection and ever-rising premiums.
“While its full effect may not be apparent until 2019, Congress has driven the individual health insurance market into a ditch with this bill. We hope that Congress will take a different approach should they endeavor to reform Medicare and Medicaid in the coming year.”
About ACAP
ACAP represents 61 Safety Net Health Plans, which provide health coverage to more than 21 million people in 29 states. Safety Net Health Plans serve their members through Medicaid, Medicare, the Children’s Health Insurance Program (CHIP), the Marketplace and other health programs. For more information, visit www.communityplans.net.
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