What Happens When the Federal Government Eliminates Health Coverage?

A patient is examined at a practice in Taylorsville, Kentucky, January 15, 2014. President Donald Trump has repeatedly threatened to cut off the federal funding that makes the Affordable Care Act's cost-sharing reductions work for insurers and patients. (Photo: Luke Sharrett / The New York Times)A patient is examined at a practice in Taylorsville, Kentucky, January 15, 2014. President Trump has repeatedly threatened to cut off the federal funding that makes the Affordable Care Act’s cost-sharing reductions work for insurers and patients. (Photo: Luke Sharrett / The New York Times)

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After much secrecy and no public deliberation, Senate Republicans finalized release their “draft” repeal and replace bill for the Affordable Care Act on June 22. Unquestionably, the released “draft” will not be the final version.

Amendments and a potential, albeit not necessary, conference committee are likely to make some adjustments. However, both the House version — American Health Care Act (AHCA) — and the Senate’s Better Care Reconciliation Act (BCRA) will significantly reduce coverage for millions of Americans and reshape insurance for virtually everyone. The Congressional Budget Office (CBO) is expected to provide final numbers early the week of June 26.

If successful, the repeal and replacement of the Affordable Care Act would be in rare company. Even though the US has been slower than any other Western country to develop a safety net, the US has rarely taken back benefits once they have been bestowed on its citizenry. Indeed, only a small number of significant cases come to mind.

My academic work has analyzed the evolution of the American health care system including those rare instances. I believe historical precedents can provide insights for the current debate.

Providing Help to Mothers and Infants

The first major federal grant program for health purposes was also the first one to quickly be eliminated. The program was authorized under the Sheppard-Towner Maternity and Infancy Protection Act of 1921. It provided the equivalent of US$20 million a year in today’s dollars to states in order to pay for…

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