Conservative Nonprofit Authors New Memo Outlining Solution for GOP to Reform Medicaid Without Political Consequences
Urges Republican Members of Congress to Use Reconciliation to Extend the Enhanced Premium Tax Credit That Helps American Families Afford Health Care
Plymouth Union Public Research (PUP Research), a national nonprofit research organization, today released a policy memo offering guidance for Republicans in Congress who are working to reform Medicaid but are worried about the political ramifications of doing so without alternative health coverage options for low-income Americans. The memo proposes that Republicans utilize the reconciliation process to extend the enhanced premium tax credits for Medicaid enrollees as a free-market policy solution. In what reads as a direct appeal to congressional Republicans worried about their political standing, PUP Research argues that expanding the tax credits will: 1) Ensure those who need coverage and are removed from Medicaid are still able to get it 2) Save taxpayers billions 3) Be critical for midterm success.
“Extending Enhanced Tax Credits – A Market-Based Off Ramp for Medicaid Recipients” outlines the following key points:
Medicaid participation has skyrocketed in recent years and now 78 million Americans depend on a program that was meant for temporary assistance.
Republicans in Congress are hoping to make reforms that will reduce costs.
Lawmakers will consider options to reduce Medicaid by up to $880 billion, including limiting overpayments and applying new work requirements.
Cutting Medicaid is unpopular, could jeopardize the GOP’s chances in the midterms, and could derail President Trump’s agenda during his final two years in office.
There is an easy, market-based alternative to Medicaid that already exists.
Extending existing tax credits for low- and middle-income Americans provides a free-market alternative to Medicaid at a fraction of the cost.
Read the full memo HERE.
The memo acknowledges the political reality many Republican lawmakers must face: cutting Medicaid without instituting alternative health coverage options is politically unsustainabl
“Advancing a reconciliation bill that contains large cuts to Medicaid without offering an alternative plan – thereby putting vulnerable populations at risk of losing health care coverage – could lead to the same disastrous political outcome that the GOP faced in 2018. Democrats will surely use the dynamic to put Republicans on defense for limiting access to health care and GOP majorities in both chambers will be at risk.”
The free market alternative that PUP Research suggests is to extend the 2021 tax credits that have allowed more Americans to buy private insurance in the individual marketplace. The memo concludes by urging Congress to extend the enhanced tax credit through the reconciliation process:
“Extending the enhanced tax credits is a free-market policy position and will save billions if paired with tailored Medicaid reforms. Congress should use the same reconciliation process to extend the enhanced tax credit. The combined policy will save over $500 billion while providing millions of low-income and working Americans with access to preventive care and critical health care services. Extending the credits while reforming Medicaid is a win for individuals, the budget, and Republicans.”
As the memo notes, President Trump’s pollster Tony Fabrizio polled swing congressional district voters in February and found that extending the health care premium tax credits was supported by four out of five voters and it ranked as a top vote mover for them to vote for a Republican candidate at +27. The survey also found that 78% of Trump voters supported extending the health care premium tax credits.
PUP Research is a 501(c)(6) nonprofit organization formed to advance high quality public opinion research related to key market-influencing policy issues in the United States.
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