This article originally appeared on The Conversation.
With members of Congress spending the month of August in their home districts, Republican efforts to do away with President Obamas signature legislative achievement, the Affordable Care Act (ACA), appear stalled, at least temporarily.
However, the Trump administration still appears committed to unraveling the ACA.Most prominent are the threats to withhold cost-sharing reductions, which reduce out-of-pocket payments for low-income consumers on the insurance marketplaces.According to the Congressional Budget Office, cutting these payments would drive up health insurance premiums by 20 percent while costing the federal government close to US$200 billion over a decade.
Keep up with this story and more by subscribing now
Senate Majority Leader Mitch McConnell, accompanied by Senators John Cornyn and John Barrasso, speaks with reporters on Capitol Hill on July 25. A new poll released July 30 found that most Americans want Republicans and Democrats to work together on health care reform. Aaron P. Bernstein/ REUTERS
Ultimately, the future of the ACA remains murky at best, leaving blue states scrambling for alternatives. One of progressives favorite solutions was floated by the California legislature at the height of Republican efforts to repeal the ACA: aplan to develop a single-payer health insurance system.Enthusiastic progressives, reeling from a series of defeats since the election of President Trump, quickly hailed the efforts as a path forward in Trumps America.
Policy experts like me were not surprisedwhen efforts in California petered out, not the least due to themassive price tag of $400 billion annually. Californians had been subjected to similar experiencesover the decades, going back to the 1910s. Time and time again, efforts at comprehensive health reform havefailed in the Golden Stateand elsewhere, such asWashington and Kentucky.
To the dismay of progressives, future efforts are likely equally doomed to failure. While states have been innovators with regards to many policies, fiscal issues and regulatory limitations will most likely preclude states from pursuing sweeping health reform. Here is why.
Financing Health Reform is Challenging
Providing insurance to those who cannot afford it is a costly endeavor, particularly in the United States. Without the financial support from the ACA, whichcurrently provides subsidies in the individual marketplaces and pays for well over 90 percent of the Medicaid expansions, states would be required to allocate funds for this purpose. This would be undeniably challenging.
For one, many states arestill recovering from the Great Recession. Moreover, other important state functions likeK-12 and higher education and criminal justiceare taking up large parts of states budgets.
Perhaps most crucially, unlike the federal government,states are generally not allowed to carry a deficitso budgets need to be balanced in any given year.
This leaves tax increases as the only solution for states seeking to get more of their residents insured. From an institutional perspective, increasing taxes is a significant obstacle because in most cases this would require asupermajority of the legislature, as well as a willing governor to accomplish. With Republicans by and large unwilling to go this route, this seems exceedingly unlikely in the foreseeable future.
Yet even for those states finding a path to increasing taxes, significant obstacles remain. Unlike for health reform at the federal level, residents and businesses have a degree ofmobility that allows them to select their location of residency. So increasing state taxes to fund health care expansion could prompt businesses and individuals to locate to other states with lower taxes.
It would likely also mean that poorer and sicker individuals seeking access to health coverage, particularly from neighboring states, would relocate to these states.
Over time, health reform would thus be financially unsustainable.
Health Reform in a Federal System is Complex
Finances aside, there are alsosignificant intergovernmental regulatory realitiespreventing states from moving forward on health reform on their own. Two issues stand out.
For one, a little-known law called theEmployee Retirement Income Security Act of 1974, commonly referred to as ERISA, poses the most crucial obstacle. While mostly intended to address retirement and pensions, ERISA also preempts states from regulating companies that choose to self-insure with regard to health care.
Self-insurance refers to arrangements where companies, instead of relying on insurance company like Blue Cross or Cigna, pay their employees medical claims directly. While companies generally contract for the administration of these arrangements, the employing company bears the entire risk. A striking50 millionemployees, particularly in large companies, are subject to these arrangements.
Second, states also do not have full regulatory authority overindividuals obtaining coverage through Medicaid and Medicare. States are virtually excluded from regulation for the latter and require the cooperation of the federal government for the former.
Combined, this putsmore than 50 percent of insurance marketsout of reach for state-based health reform efforts, making it inherently unviable.
So How Did Massachusetts Do It?
Jae C. Hong / AP Photos
Given these limitations, how was Massachusetts able to implement state-based health reform? It took a confluence of fortuitous circumstances.
First, there wasbipartisan cooperationat both the state and federal level.
Massachusetts Gov. Mitt Romney, President George Bush and Secretary of Health and Human Services Mike Leavitt, all Republicans, were able to come to an agreement with Sen. Ted Kennedy (Democrat of Masachusetts) and Democrats in the state legislature.
Bipartisanship also meant that everyone was invested in the project, at the state and federal level, and sought to make a success.
Second, thefederal government was willing to foot most of the billand provided regulatory support for the states effort.
Third, Massachusetts is arelatively wealthy state that already covered a large percentage of its population.
A confluence like this appears highly unlikely under current political realities.
Moving Forward with GOP Health Reform
States have a long history of developing sound policy solutions. For example,Wisconsin pioneeredboth unemployment insurance and pension schemes that laid the foundation for federal policies during the New Deal.
Yet states are not equally well-equipped to address all policy issues. Comprehensive health reform is one of those issues.
Current GOP proposals would do little to overcome the financial and regulatory barriers to state-based reform.
Indeed, states would be further inhibited bysignificant cuts to the Medicaidprogram. Moreover,waiversincluded in the various proposal, in a marked contrast to the ACA, are focused on allowing states to provide less coverage and fewer benefits.
Allowing policies to besold across state lines, if successful, would further restrict the sovereignty of states to regulate their insurance markets.
Republican efforts to repeal and potentially replace the ACA may not be dormant for long. The Democratic victory in the Senate in July was a shaky one that could be quickly undone, for example, ifSen. Joe Manchin(Democrat of West Virginia) or Sen. John McCain (Republican of Arizona) choose to leave the Senate. The2018 election for the Senate also puts Democrats at a significant disadvantageand Republicans may further enlarge their majority.
Unquestionably, progressive legislators will continue to introduce bills aimed at comprehensive reforms. Yet, history and economics tell us that these efforts are unlikely to make much headway. The structural limitations of states in a federal system may confine their efforts tofilling in the gaps until the federal government further extends coverage.
Simon Haeder is an Assistant Professor of Political Science, West Virginia University.
Continue reading here:
Single-Payer Health Care at the State Level is Doomed - Newsweek
- How good is fish for your diet? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What foods have both fiber and protein? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is There Evidence That Acupuncture Works? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What are some good fiber foods? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Can Green Tea fight HIV infection? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Quality of GNC Supplements [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- The Gene Smart Diet [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Tips for eating in a vegetarian lifestyle [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Regarding the Starting of a new diet regimen [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Thoughts on Dropping Weight [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What do doctors think about vitamin E supplements? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What herbs or supplements are commonly used for depression? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is there a safe way to lose a lot of weight? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Diets that promise you will lose weight [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Are Fish Toxins Linked to Diabetes? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Can Plastic Surgery Help Migraines? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Weight Loss Surgery Eradicates Diabetes Symptoms [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Found: A Gene That Controls Fat Cells [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Sugars and Starches, what's the difference? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Improving your health with a serving of nuts? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is Your Diet Causing You To Be Depressed? [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Placebo Effect: Magnetic Bracelet Therapy [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Does serotonin promote sleep? [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Decreased energy levels - Overeating, Sleep, Nutrition [Last Updated On: February 1st, 2010] [Originally Added On: February 1st, 2010]
- When will the body begin to cannibalize muscle tissue? [Last Updated On: February 7th, 2010] [Originally Added On: February 7th, 2010]
- Foods that are high in antioxidants [Last Updated On: February 7th, 2010] [Originally Added On: February 7th, 2010]
- Editorial: Reduce health care costs by cutting administrative overhead [Last Updated On: April 1st, 2012] [Originally Added On: April 1st, 2012]
- Health Care Winners: Centene, Onyxx [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Dan Morain: Nurses union puts politics ahead of health [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- What's next if Obamacare falls? [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Global Managed Health Care Services Industry [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Immigration Fight Echoes Health-Care Case at High Court [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Medical Centers Lead Workplace Wellness Effort [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- The next health care overhaul? Look to employers [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Capital BlueCross Hosts Community Health Care Forums Focused on Managing Costs While Maintaining Quality [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- County committee to look at area health care [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- President Obama Calls on Students to Tell Congress: #DontDoubleMyRate - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Sen. Coburn: Competition in Health Care to Allocate Resources - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Jesse Kelly health care - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- PHC Vision Statement (short version) - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- The Bioeconomy Blueprint Panel - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Providence Health Care's Vision Statement - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Department of Health and Human Services: Minority Health Blogger Townhall - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health care worker accused of stealing identities of brain i - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health Care Reform, Part 1 of 3 | KYVE Insiders Roundtable - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health Care Reform: The ACA and Beyond - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Is Broccoli Like Health Insurance? - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Did Obama make a mistake on health care? - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- How Democrats Lie About Health Care - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Toobin on Health Care: This was a "judicial hissy-fit" - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- President Obama says health care law will stand - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Obama Defends Health Care Law From 'Judicial Activism' - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Obama Healthcare Individual Mandate - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- President Obama attacks Supreme Court on health care - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Raw Audio: High Court Dissects Health Care Act - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health care on trial - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Final Day of Health Care Law Arguments Before Supreme Court - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Feds to put up $1.9B for Oregon health overhaul [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Scuttling health care act will freeze Medicare, White House warns [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- U.S. Health Care Spending High, But Quality Lags: Report [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Yes, the Health-Care Mandate Is About Liberty [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Health center gets $1M federal grant [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Health-care reform panel considers exchange options for Va. [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Hmong health care gap focus of Healthy House dinner [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Walsh-led health bill to be unveiled [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Ontario health system confusing for ailing seniors, study finds [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- 'Health Care Deserts' More Common in Black Neighborhoods [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- With federal money, Oregon kicks health care reform into high gear [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Nurse practitioners tackling more 'doctor' tasks [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Konza Prairie Health Center Receives $4.5 Million Grant [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Alberta wages hurting Sask. health care [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- House releases plan to cut growth of Massachusetts health spending in half [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Mass. House Will Unveil Bill Seeking To Rein In Health Costs [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- President Obama Welcomes the Kentucky Wildcats - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- President Obama Speaks on College Affordability - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- My First Job: Gene Sperling - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Health-care costs worry near-retirees [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- Massachusetts Institutes Health-Care Price Controls. Is America Next? [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- Massachusetts Moves Toward Health-Care Price Controls. Is America Next? [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- GOP plan boosts Pentagon, cuts social programs [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]