Seven years after former President Barack Obama signed his signature bill, The Patient Protection and Affordable Care Act (ACA), there may actually be a repeal and replacement bill, hopefully fixing some of the problems incurred through the ACA. Among others, a few of goals of a repeal and replace bill were:
- Repealing the individual mandate, which was, in essence, a tax on people who didn’t have health insurance.
- Lowering the rising premium costs that made many of the health insurance plans on the ACA marketplace either unaffordable or simply not comprehensive enough (i.e., low quality) to justify the costs.
- Alleviating the “failing” health insurance market for the ACA marketplace, in which numerous health insurance providers exited or vowed to exit due to financial losses.
In general, Congressional and Senate Republicans have vehemently opposed the ACA since its inception. With a majority in both the House of Representatives and Senate, in addition to President Trump’s ACA-related agenda, they should be able to finally act upon their wishes and repeal and replace the ACA. Recently, the House Speaker and other members of the House presented their solution: The American Health Care Act (AHCA), which has caused significant outrage on both party lines for various reasons.
- More conservative Republicans believe that the AHCA doesn’t go far enough to repeal the ACA since it still provides an entitlement feature through health insurance tax credits, among other things.
- Democrats strongly oppose many facets of the bill, notably its Medicaid roll-back after 2020 and its toll on low-income earners by reducing the health insurance subsidies (ACA provided subsidies based on income level, whereas the AHCA facilitates tax credits scaling with age).
However, all of this was pure conceptual speculation. That was until the Congressional Budget Office (CBO), the government’s independent economic and statistical “judge” or “calculator”, provided its analysis on Monday, March 13. In all, the CBO’s report provides positive and negative takeaways to the proposed AHCA in its current form. The chart below highlights a few of its findings:
Pretty much all of the CBO’s projections were suspected by readers of the AHCA, or those that have followed the discussions since its release last week. However, the CBO’s report provides tangible and quantitative forecasts with in-depth analyses supporting its findings and calculations, providing even more ammo for both sides of the political spectrum. Both Democrats (24 million more uninsured individuals by 2026 and higher costs for older enrollees) and Republicans (lowering the federal deficit by $337 billion by 2026, and ultimately, lowering premiums in the long-term) have tangible, quantitative evidence to support each of their claims and arguments in favor or against the bill.
It’ll be interesting to see how things develop in the coming weeks and whether there’ll be significant discussions on the AHCA, leading to substantial revisions and/or amendments to help progress or even kill the bill. If the bill becomes law in its current form, however, it may have a significant impact on the ARM industry:
- Healthcare bad debt will transfer from individuals (and insurers) to hospitals (in the long-run) since premiums will be lower, reducing the monthly costs of health insurance for consumers, but there’ll be substantially more uninsured individuals throughout the economy, leading to more “emergency” visits and unplanned healthcare expenditures, which many of these uninsured, low-income individuals won’t be able to afford.
- Older, low-income enrollees in rural areas are projected to be negatively impacted the most, potentially leading to a consumer preference shift towards these individuals reserving more money for healthcare expenditures instead of general economic and goods consumption.
In all, this bodes well for ARM companies servicing the healthcare industry, as overall healthcare bad debts for consumers should rise. However, much of ARM services will be on behalf of healthcare providers (e.g., hospitals and physicians’ offices) instead of consumers. Additionally, there should be less required collection services with regards to health insurance providers since, under the AHCA, they should be better able to turn a profit and pay for health insurance enrollees.
Four Seasons Hotel
Las Vegas, NV
May 10th-12th, 2017
This content rich educational conference gives the techniques, strategies and resources for maximizing collection and recovery outcomes. Our goal is to enrich the intensity of the conference for the exhibitor, attendee and sponsor alike with an unparalleled learning experience. This is an exclusive gathering of industry professionals like none other!
The Ritz Carlton
Montreal, Quebec, Canada
June 18th – 20th, 2017
ICG was originally formed by Dennis Punches nearly five decades ago, in 1967, as Men of Ideas. As the CEO and Founder of Payco American, the largest collection agency in the world at the time, Dennis wanted to establish a group comprised of decision makers from the largest debt collection agencies in the world to meet once a year. They would get together to discuss the business and industry trends, and build camaraderie, getting to know one another on a personal and professional level. This continued for decades, and the original members were truly recognized as the market leaders.
Today, ICG consists of some recognized market leaders. Concerted efforts are now being made to expand the group’s presence to include ARM professionals in the U.S. and other credit economies across the globe.
Going forward, participants in ICG will include CEOs from the largest first and third-party collection agencies, collection law firms, and debt buying operations. In the U.S., participants will come from major market sectors including banking, telecom, healthcare, government, student loans and commercial. Outside of the U.S., the focus will be on the largest ARM companies in particular credit driven countries. Discussions will focus on the big issues that affect all collection professionals regardless of their location.
Jim Richards, CEO of Capio Partners, said, “I am excited about the changes we are making at ICG and believe they will reinforce the original mission of this elite group. We as a group believe that utilizing Mike Ginsberg and his organization will broaden our access to the best and largest industry leaders in the world today.”
New York State Now Offers Free College Tuition: The Potential Beginning of a Major Nationwide Trend
April 27, 2017
The Department of Education contract for debt collection services is one of the most lucrative and sought after contracts today by ARM companies. However, state-level legislation like The Excelsior Scholarship could have profound effects on the student loan market.....» see this post » all posts
Non-Employment Index: An Alternative Employment Stat
April 26, 2017
The U.S. unemployment rate is a popular measure for looking at the health of the U.S. economy, but alternative measures like the non-employment index may provide even greater insight. In this blog, Kaulkin Ginsberg's analysts examine the strength of the U.S. economy using this alternative measure and its relation to the ARM industry.....» see this post » all posts
Healthcare: The Ever-Growing Industry
April 25, 2017
The healthcare industry is one of the most widely analyzed industries in the US due to its seemingly never ending growth. As such, it's no surprise the ARM industry is so focused on the potential impact of a repeal and replace bill for the ACA. ....» see this post » all posts
ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" in its Winter 2017 Magazine
March 16, 2017
The ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" by Kaulkin Ginsberg in its Winter 2017 Magazine. Kaulkin Ginsberg details its belief that the growth in patient lending and financing programs, clinical integration networks, and physician quality reporting systems for the Centers for Medicare and Medicaid Services (CMS) could have profound effects on companies focused on servicing healthcare providers in 2017 and beyond.....
ACA of Texas Publishes "M&A Trends in the U.S. ARM Industry" in its Winter 2017 Magazine
March 15, 2017
The ACA of Texas Publishe "M&A Trends in the U.S. ARM Industry" an article by Kaulkin Ginsberg in its Winter 2017 Magazine. This article examines the key trends and developments driving M&A activity in the U.S. ARM industry by market segment.....
Mike Ginsberg Leading Panel Discussion at DBA International 20th Anniversary Conference
February 1, 2017
Mike Ginsberg, President and CEO of Kaulkin Ginsberg, will be speaking in a panel discussion on Trends in Debt Buying on Wednesday, February 8th at the DBA International 20th Anniversary Conference in Las Vegas, Nevada....