Impact of Obamacare as coronavirus cases spike in U.S.

Kaiser Family Foundation Senior Fellow Karyn Schwartz joins Yahoo Finance’s Seana Smith to discuss the impact the Affordable Care Act as coronavirus cases spike in the U.S.

Video Transcript

SEANA SMITH: Welcome back. Well, it's been 10 years since the passage of the Affordable Care Act. In a time like this when millions of Americans are losing their jobs, many are also losing their benefits as well. So how does the Affordable Care Act play into all this and help out those Americans in need?

Joining us now, we have Karyn Schwartz, a senior fellow at a Kaiser Family Foundation. And, Karyn, thanks for joining us here. Let's talk about the Affordable Care Act and the impact that it's having at a time like this. How big of a difference is it making right now?

KARYN SCHWARTZ: Sure. Well, even leading into this coronavirus pandemic, there are about 20 million fewer uninsured because of the Affordable Care Act and the coverage expansions in that law. And now as people are losing their jobs, they're going to have options to maintain coverage that weren't there before the Affordable Care Act.

SEANA SMITH: But there are still millions and millions of Americans that are still uninsured. At a time like this, how concerning is that, or what can we best do in order to try and address this type of situation?

KARYN SCHWARTZ: Yes, it is quite concerning. I mean, we know from many studies that people who are uninsured are more hesitant to go to the doctor or the hospital. They may be more nervous to get the treatment that they might need were they to become infected with the coronavirus.

So there are several options that policymakers could take to try to expand coverage. You know, they could, at a federal level, increase support for the Medicaid program, increase subsidies for people to buy coverage on their own or to maintain the employer coverage that they had for their jobs through the COBRA program, and in the past we've seen some subsidies for that as well.

SEANA SMITH: Karyn, we saw 3.3 million people apply for jobless claims or apply for unemployment last month in the jobless-- or last week, I'm sorry, in the jobless-claims report. Can people who lose their jobs, can they sign up outside that standard enrollment window for the Affordable Care Act?

KARYN SCHWARTZ: That's a great question. If you lose your job and lose your employer-sponsored coverage, you can go into the marketplaces, even though it's not the typical open-enrollment period, and buy coverage, and you may qualify for subsidies. For a family of four with income of less than $9,000 a month, they would qualify for subsidies in the marketplaces. Those with lower incomes may qualify for Medicaid where they wouldn't typically be paying premiums.

SEANA SMITH: Karyn, because right now, it's interesting that we're having this discussion just in terms of what we've seen surrounding the ACA because its future is relatively uncertain. We have the Supreme Court. They're set to hear arguments later this year that challenge the individual mandate. Also raising questions about the entire law's survival. What do you think the consequences are if we do, in fact, see a repeal or somehow have it scaled back just in terms of the ACA and what it could mean in the future?

KARYN SCHWARTZ: Sure. You know, if the Supreme Court rules that either some or all of the Affordable Care Act is repealed, you know, it would be a big change to the health-care system right as it's sort of taxed to the limit facing the coronavirus. And so you know, we know the Republicans and President Trump has said it's his intention to replace the Affordable Care Act with something. But, you know, it's very complicated to try and roll out a whole new program and to do it at a time when our health-care system is already facing the coronavirus. You know, it would be hard for everyone to just absorb the hiccups as any changes were made.

SEANA SMITH: Karyn, do you have any insight just in terms of the demand that maybe we have seen for people wanting to sign up for the Affordable Care Act since they've been let go or since this pandemic has unfolded here in the US?

KARYN SCHWARTZ: No, I don't think we've seen exact numbers out, but I'm sure we're likely to see many, many more people signing up through the marketplaces, enrolling in Medicaid. You know, the marketplaces weren't an option during the last recession because that was before the Affordable Care Act, so this will be a big test. But I think, you know, it is such an important option for people to be aware of because, again, so many people will be qualifying for subsidies.

SEANA SMITH: All right, Karyn Schwartz is senior fellow at the Kaiser Family Foundation. Thanks for joining us today.

KARYN SCHWARTZ: Thanks for having me.