Five Myths About Healthcare Reform

By Ann Sullivan

The collapse of the Obamacare repeal legislation in the Senate sent partisan pundits into a frenzy, but for those of us who are less interested in politics and more interested in good policy, here are five myths about health care reform worth debunking.

1.     Fixing the ACA (Obamacare) is Dead: Yes, for the time being it is, but not in the long run. If you listen to speeches delivered from Democrats and Republicans, healthcare is far too important to the public and this sector of the economy to ignore. Senator McCain and others pleaded for the Senate to go through the committee process, which includes hearings and collaboration, to pass comprehensive legislation. In Capitol Hill-speak, that process is called “regular order.” That is likely the next move for Congress.

2.     Republicans Control the Congress and the Executive Branch so Passage Should be Easy:  This oft-repeated statement assumes that all Republicans think alike. In reality, the party runs the gamut of ultra-conservative to moderate to libertarian-ish. So, it’s not surprising that when it comes to healthcare reform, the party is all over the map. Getting Republicans to agree to a bill is a tall order given these different philosophical bents in both the House and Senate.

3.     Democrats Don’t Want to Fix Obamacare: If you thought the Republicans are a disorganized bunch, take a look at the Democrats. They often pride themselves on their chaotic ways. Sure, some Democrats believe Obamacare is perfect, but the vast majority do not. In closing remarks of the Senate debate, Senator Schumer acknowledged the law needed revision, stating “it’s not perfect – let’s work together.”

4.     The Congressional Budget Office is Partisan: Since the agency’s formation in 1975, the CBO’s budget scorekeeping on major public policy proposals has been criticized by politicians when estimates didn’t agree with their positions. The head of the CBO is appointed by the party in power and its mission is nonpartisan.

5.     Reform Will Result in Reduced Premiums: Health insurance is a risk pool. Structuring the pool to include enough healthy people to subsidize the unhealthy people is a balance Obamacare was largely unsuccessful in achieving. The other side of the equation is the expense side of the delivery of healthcare—which is anything but transparent. Premiums will not come down until these two problems are resolved. Nibbling around the edges of health insurance regulations or a simple repeal will not achieve reduced premiums.  

Two Steps Forward, One Step Back

By Mark Lee

What a year so far! 2017 has been eventful to say the least, yet AEO continues to patrol the Halls of Congress and the Administration advocating for our nation’s microentrepreneur and small business community.  Our work in Washington and your strong advocacy on behalf of AEO’s priorities with Members of Congress has borne fruit in the 115^th Congress.  On Friday, July 19 the House passed the H.R. 2056, the “Microloan Modernization Act of 2017” preserving funding for the Small Business Administration’s (SBA) Microloan program.  However, there’s still work to do!
The original version of the “Microloan Modernization Act of 2017”, introduced by Rep. Stephanie Murphy of Florida, repealed the 25% pre-loan, and 75% post-loan technical assistance rule, however the rule was changed to 50/50 during mark-up in the House Small Business Committee. The bill will now go to the Senate for consideration.  The Senate companion bill, S.526, introduced by Senator Deb Fischer, includes full repeal of the 25/75 rule, which AEO supports.

In addition to working on regulatory changes, our policy team has also been working on securing appropriations for federal programs that support microbusinesses. On July 13^th, the House Appropriations Committee passed the FY2018 Financial Services & General Government (FSGG) funding bill.  FSGG is the subcommittee of jurisdiction for the SBA and the Treasury Department’s CDFI Fund.  The SBA’s Microloan program was funded at AEO’s budget request level of $31 million for technical assistance, supporting $44 million in loans.  However, the CDFI Fund, while not eliminated as the Administration requested in their budget proposal, was only funded at $190 million which is $60 million below AEO’s request.  Allocations for Women’s Business Centers ($17 million) and SBDCs ($120 million) were also below AEO’s request.  The PRIME program was eliminated entirely.

The fight for our nation’s small businesses has moved to the Senate, where things are likely to be much different.  On July 26^th, the Senate FSGG Appropriations Subcommittee held a hearing where Chair Shelley Moore-Capito (R-WV) took Treasury Secretary Steve Mnuchin to task for the Administration’s desire to eliminate the CDFI Fund.  During questioning by Chair Capito, Mr. Mnuchin indicated that the elimination of the CDFI Fund was not merit based, but defended the cut as part of the administration’s effort to increase defense spending through cuts to non-defense programs.

We mentioned earlier this year that Senator Moore-Capito is a powerful ally of the CDFI Fund. In June, the Senator’s office indicated to AEO’s policy team that the FY2017 omnibus, which funded CDFI at $248 million, was an appropriate funding level for the program.We’re halfway there! When Congress returns from the August recess, the Senate will begin the FY2018 appropriations process.  In addition, we will be urging them to take action on S. 526.  Thank you for everything you do on behalf of our nation’s microentrepreneurs and small businesses, and let’s race to the finish!