American Health Care Act (AHCA): What It Means for Genesee County Residents

Many Genesee County residents are wondering how they will be affected by the American Health Care Act (AHCA) that was narrowly approved in May by the U.S. House of Representatives. While it’s still unclear whether the U.S Senate will pass the AHCA in its current form, or make significant changes to the bill, the AHCA in its current form could have serious consequences for Genesee County residents. Here are some of the top impacts the AHCA could have:

1. Decreased access to insurance for people with pre-existing conditions.
In Michigan, approximately 28 percent of residents under the age of 65 have a pre-existing condition that could limit their ability to buy health insurance, according to the Kaiser Family Foundation. Under the AHCA, Michigan could allow insurers to increase the cost of premiums based on a person’s medical history. The AHCA could also limit coverage options under the AHCA.

2. Older Genesee County residents could lose their health coverage.  
More than five million older adults could lose health insurance by 2026 under the AHCA. Adults ages 50-64 with income levels below 200 percent poverty would experience the biggest loss of health care coverage under the AHCA due to a significant increase in health costs. Under the AHCA, Michigan would be able to allow insurers to charge more for this older population. A new study shows about 15 million elderly and disabled Americans spend 20 percent of their household incomes on premiums and out-of-pocket costs – approximately $3,024 per year. It is estimated that older Americans could pay nearly $12,900 annually for premiums if the AHCA is passed. Additionally, it is estimated that the number of low-income older adults who are uninsured would rise from 12 percent under the current law to 29 percent under the AHCA by 2026.

3. Genesee County families will pay for preventive health services that are currently provided for free under current law. 
From annual physicals to cancer screenings and vaccinations, the current health care law requires insurance plans to cover preventive health services without a deductible or co-pay. Under the AHCA, these requirements may be removed, which could potentially lower the cost of health care coverage but force people to pay out-of-pocket costs for preventive health services.   

We encourage all Genesee County residents to continue taking preventive steps to improve their health. Under the current health care law (the Affordable Care Act), preventive services are covered by insurance plans. If you haven’t already, schedule your annual check-up and necessary health screenings. Questions about what steps to take? Call one of our Health Navigators at (844) 232-7740 who can get you connected with preventive care services.

4. Access to Medicaid may decrease for low-income Genesee County residents.
Michigan is one of 31 states that have expanded Medicaid under the Affordable Care Act (ACA). Healthy Michigan opens Medicaid enrollment to people between the ages of 19 and 64 who have an income less than 133 percent below the poverty level– or about $16,000 for a single person. The poverty level is the set minimum amount of income that a family needs for food, clothing, transportation, shelter and other necessities, as determined by the Department of Health and Human Services, and varies based on family size.  In Genesee County, there are currently 35,000 residents enrolled in Healthy Michigan, which is Michigan’s expanded Medicaid program.

Medicaid and Healthy Michigan provide access to high-quality health care for many residents in Genesee County. This coverage plays a key role in prevention and keeping Michiganders healthy. In fact, research by the University of Virginia found the number of Michigan residents at risk for heart complications had reduced by 30 percent three years after the implementation of Healthy Michigan.

It’s unclear whether the State of Michigan would continue funding programs like Healthy Michigan. The House-passed bill significantly alters funding for these programs, creating fixed-dollar block grants to cover health-related costs for those who qualify for Medicaid. Block grants are fixed amounts of funding that do not respond to changes in enrollment or program costs.

5. Genesee County veterans could lose access to critical health care services.
More than 27,000 military veterans call Genesee County home. Research shows the rate of uninsured veterans dropped by 42 percent between 2013 and 2015. Although millions of veterans may access health care through the Department of Veteran Affairs (VA), not all veterans qualify for care through the VA or choose health care plans through the VA. The proposed AHCA doesn’t require Medicaid plans to cover mental health, substance abuse and behavioral health services – all health care services that benefit many veterans.  A 2015 survey found that 58 percent of veterans reported having a mental health injury due to their service. If mental health coverage for Medicaid enrollees is decreased, this could have many repercussions for veterans who suffer from mental health illnesses such as Post Traumatic Stress Disorder (PTSD).

The Genesee Health Plan is here to help you take steps to better health and help you navigate the complex health care landscape. We encourage you to continue taking preventive steps towards better health, such as scheduling doctor’s appointments and creating healthy habits that improve your overall health. If you have questions about your coverage or what’s available, please call our office at (844) 232-7740. You can also watch GHP President and CEO Jim Milanowski’s recent NBC 25 interview to learn more about how proposed Medicaid cuts could affect Mid-Michigan residents.