CRE Healthcare Execs Break Down The American Health Care Act

Last week Republican lawmakers revealed their replacement for the Affordable Care Act: the American Health Care Act. Healthcare industry execs were on hand at Bisnow’s Big South event to break down the bill's impact the very next day. 

The legislation calls for providing refundable tax credits based on a person's age and income. It loosens one of the ACA's strict insurance reforms so carriers can offer a wider array of policies and pick up less of the tab for providing care. It keeps the protections for those with pre-existing conditions, but it allows insurers to levy a 30% surcharge for one year on the premiums of those who let their coverage lapse. It lifts the taxes Obamacare imposed on the wealthy, insurers and prescription drug manufacturers. The bill also eliminates the enhanced federal match for Medicaid expansion starting in 2020 and revamps funding for the entire Medicaid program.

Since the act was hot off the printers, our experts had not yet had time to dive deeply into what was proposed, but offered initial reactions. “We have an obvious interest in patients with insurance. We’re certainly in favor of ways that make fiscal sense to insure more Americans,” said UT Health chief operating officer and chief financial officer Kevin Dillon. “What was proposed yesterday is obviously a long way from the finish, given the American system of government.” 

Dillon said, “It’s interesting to see how much is now uncontroversial, like insuring kids up to 26, or pre-existing conditions. Those kind of things are helpful.”  

What remains unclear is the rates. “We all worry about the rate we get paid per occurrence being migrated down to a governmental Medicare/Medicaid type reimbursement. I’d say we’re moderately bullish,” Dillon said. 

Read King Medical Development president Tim Delgado thinks the plan is good for the healthcare and medical real estate industries. "It’s going to give more folks the chance to create more healthcare facilities and delivery methods that are better than what we’ve seen in the past.”

Not all agreed with Delgado. "Ultimately my take on this is that we're going to have less insured, that’s one thing I feel pretty strongly about. It will put more pressure on hospital systems. From a real estate standpoint you’re going to see a lot more migration towards an outpatient setting," VMG Health managing director John Trabold said.

Over the past week, various healthcare institutions have taken a closer look at the plan. The American Hospital Association, which represents nearly 5,000 institutions nationwide, and the Catholic Health Association of the United States, the nation's largest not-for-profit health provider, wrote Congress warning that the bill would lead to significant cuts in a program that provides services to the most vulnerable, Medicare DSH payments. The American Medical Association said the American Health Care Act is "critically flawed."

The Congressional Budget Office is expected to release its assessment of the GOP's plan, the American Health Care Act, as early as Monday. The nonpartisan report will include an estimate of the law's cost and statistics on how many Americans will lose coverage under the new plan.