AARP: Federal Healthcare Bill Could Hurt 3.3 M+ New Yorkers, Weaken Medicare

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AARP Urging NY House Members to Vote No, Protect Constituents

NEW YORK, N.Y. – The American Health Care Act (AHCA) could hurt over 3.3 million New Yorkers by hiking health insurance premiums, reducing tax credits and reducing or eliminating coverage and services for the neediest - while weakening Medicare for all current and future seniors.

AARP today urged New York’s 27 House members to vote against the bill when it comes up for a scheduled vote on Thursday.

Specific data is available for congressional districts represented by Lee Zeldin (CD 1), Peter King (CD 2), Tom Suozzi (CD 3), Dan Donovan (CD11), John Faso (CD 19), Elise Stefanik (CD21), Claudia Tenney (CD22), Tom Reed (CD23), John Katko (CD24) and Chris Collins (CD27).

Current data from the New York State Health Department shows that statewide:

• 665,324 low-income residents receive “essentials” health insurance that is 85 percent subsidized by the federal government. The AHCA would eliminate the entire federal subsidy, resulting in a potential loss of insurance for most of those enrollees – or possibly forcing them to turn to unaffordable insurance on their own.
• 242,880 residents buy their insurance through New York’s healthcare exchange. Many receive income-based tax credits and cost-sharing subsidies  to make coverage affordable. The AHCA would restructure the credits, resulting in lower tax credits – and thus higher premiums - for many low- or moderate- income enrollees. It would also eliminate cost-sharing subsidies that lower copays, deductibles and other costs for some enrollees. About 126,000 New Yorkers ages 50 to 64 receive premium tax credits, according to  AARP's Public Policy Institute.
• 2,427,375 low-income residents are on Medicaid, whose funding would be cut substantially under the AHCA - eliminating much-needed services that allow seniors to age independently in their own homes and communities, as nine of every 10 want.

Additionally, the Medicare program itself would be weakened by the AHCA’s repeal of a 0.9 percent payroll tax on high-income earners. Repeal would cause the Medicare trust fund to become insolvent four years earlier than the currently projected 2028. Earlier insolvency could lead to vouchers and other benefit cuts that would hurt current and future seniors who paid into or are still paying into the program in the expectation that promised benefits will be there.

The AHCA also repeals the fee on manufacturers and importers of branded prescription drugs, which currently is projected to add $25 billion to the Medicare Part B trust fund until 2026.

“This legislation gives sweetheart deals to drug and insurance companies, and who pays for that? Older and lower-income Americans and the middle class - the ones who can least afford it,” said AARP New York State Director Beth Finkel. “This bill could hurt over 3.3 million New Yorkers – and potentially all of them. AARP urges all of our House members to vote no on the bill.”

The nonpartisan Congressional Budget Office (CBO) predicts that 24 million Americans could lose health coverage by 2026 under the AHCA, leaving 52 million Americans uninsured. The CBO analysis reveals that the biggest financial burden would fall “disproportionately” on Americans ages 50-64 years old, further reinforcing concerns for AARP, the pre-eminent organization for Americans 50 and over.

AARP will fight to ensure that any federal health legislation protects Medicare, lowers prescription drug prices, stops insurance companies from overcharging older Americans, and protects older Americans’ ability to live independently.

Contact: Erik Kriss, ekriss@aarp.org

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AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name.  As a trusted source for news and information, AARP produces the world’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

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