How Affordable Care Act Affects Seniors
Older Americans Month -- (How the Affordable Care Act Affects Seniors)
Right At Home would like to take this opportunity to wish you a Happy Older Americans Month. Because we work with a large number of seniors we wanted to take this occasion to provide you with some valuable resources and information.
Seniors and The Affordable Care Act
Many people don’t realize that the affordable care act (ACA) can actually impact those who are on Medicare too. Often, those on Medicare benefit from in-home caregiving, in-home physical therapy and more.
Along with using Medicare to pay for these programs, secondary insurances and state funded insurances are used to help seniors pay for the services. The changes in the ACA could affect some insurances such as state funded programs and secondary insurances.
What Seniors Should Know About the Affordable Care Act
Prescriptions
- Generic vs. Biosimilar Drugs – On Charlotte's Blog they discuss the term created by the affordable care act called “biosimilar medications.” It may seem like the terms generic and biosimilar are interchangeable; however, they are different with some important distinctions which include how the drug is approved by the FDA.
- You Choose – Pharmacists can replace a prescription with a biosimilar medication even if your doctor hasn’t authorized a replacement with a generic equivalent. However, this can only be done with YOUR permission to accept the less expensive, identical non-brand version.
- Lower Price for the Same Drug – Biosimilar drugs are identical to the brand name prescription drug except for the FDA approval process. Bio-similar manufacturers must verify that their drug is exactly the same as the brand name and it has the same result & effectiveness.
Bio-Similar Drugs – In Summary
- Same Drug/No Branding – What is the difference between biosimilars and generics? Basically, it’s like taking two cars out for a test drive that are identical in every way. One gets a sticker on the front that says it’s a high-end luxury car and the price is increased substantially. The other has no sticker and remains much less than the “brand” name car.
- Cost Benefits – The main benefit of accepting bio-similar prescriptions is very simple; it’s a matter of cost effectiveness to the consumer. You are guaranteed that it is created exactly like the brand name drug which has gone through rigorous FDA testing and approval.
Most of us were unaware that the term [biosimilar] and the options it provides. It has been an effective part of our healthcare system, as provided by the ACA, for years. This is just one way that the ACA helps make health care more affordable for all citizens, including seniors.
The Newest Vote for the American Health Care Act (AHCA)
In May of 2017 Congress voted to pass the American Health Care Act (ACHA). Sometimes referred to as “Trump Care,” it was created to replace the ACA (also known as Obama Care).
How the American Health Care Act Could Affect Seniors:
- Medicaid Funding – According to the NCOA 7 million older Americans would be affected by changes to Medicaid. Seniors use Medicaid along with Medicare to pay for long-term services and services not covered by Medicare. Funding for Medicaid would be cut under the current ACHA plan. The result would be to reduce funding by $839 million by 2026.
- Medicare Funding – The AHCA bill, as written now, is set to remove a tax that currently affects those who make over $200,000/single & $250,000/couple. Loss of this money would cause Medicare funding to now become “broke” by 2025 as opposed to the currently estimated date of 2028.
- Age Tax – While I don’t see this as an actual “tax” there is a provision that will allow those who are pre-Medicare to pay 5x (or more) the price that younger adults pay for the same insurance. Currently, under the ACA, being older does allow for no more than 3x the amount for pre-Medicare customers.
In Summary
Remember these facts:
- Congress passed the AHCA Bill; however, the bill currently is sitting in the Senate waiting to be voted on.
- There is a 1% chance that the bill will be approved and take effect as it is currently written.
- You can contact your Senator and give him/her your opinion about the bill.
- The Congressional Budget Office government website provides this excellent synopsis on the AHCA and how it could change our current healthcare system. Read the facts and make your own choices.
- As seniors, healthcare is important to you. Having Medicare doesn’t mean you are exempt from changes made to our system.
It’s important to us here at Right At Home to help you stay informed. The healthcare benefits you have could change many decisions you have to make as you continue to age. We want you to be able to age Right At Home where you belong now and through the years ahead.
Keeping you happy & safe
Right At Home,
Gregg Balbera
Cited Works:
The National Council on Aging (NCOA) – Straight Talk for Seniors – The American Health Care Act