Health insurers are asking Congress to appropriate two years of federal payments under Obamacare that help them lower out-of-pocket costs for customers, even as Republicans and Democrats have indicated that there is disagreement over whether to appropriate the funds at all.
Members of the Senate Health, Education, Labor and Pensions Committee are beginning hearings Wednesday to try to arrive at a bipartisan deal that would stabilize the health insurance exchanges. One option will be to appropriate the funds insurers are requesting, called cost-sharing reduction subsidies.
“Without two years of CSR funding, uncertainty will persist and the Congress will need to address these same issues early next year,” insurers wrote in a letter sent by medical groups like the American Hospital Association. “In addition, without a break in funding for the CSRs, we expect that this provision would not contribute to the federal deficit.”
According to a report from the Congressional Budget Office, without the funds insurers would raise premiums for next year by an average of 20 percent, an increase that would be felt by Obamacare customers who do not receive government assistance to pay for their plans. The move would result in an increase of $194 billion on the federal deficit, CBO found.
It’s unclear what AHIP will propose for the longer term. CBO also found that by 2020 around 1 million more people would enroll in coverage because some who are on the threshold of qualifying for subsidies would become eligible for them as the prices of premiums increase.
GOP Sen. Lamar Alexander, HELP Committee chairman, has said he supports appropriating the funds for a year, while the top-ranking Democrat on the committee, Sen. Patty Murray of Washington, has urged a longer-term solution. At this time, pending a court case over the legality of the funds, the Trump administration is distributing them monthly with no long-term commitment.
Without knowing whether to expect the federal funds, insurers have said they don’t know how much to charge for premiums in 2018.
In prepared remarks intended to be delivered at the hearing Wednesday, America’s Health Insurance Plans also plans to ask Congress to undo the health insurance tax, which increases the price of premiums, as well as for a federally funded reinsurance program, a move that it said could reduce premiums by around 10 percent.
Insurers voiced their support for a GOP proposal that would give states more flexibility over 1332 waivers under Obamacare, known as “innovation waivers.” AHIP specifically requested that waivers take less time to be approved by the administration, rather than the 180 days stipulated in the law, and that state officials be allowed to bypass their legislatures in cases of an emergency.
The waiver proposal is similar to an Obamacare waiver that was filed in Iowa, which is facing high costs on premiums and the prospect of having only one insurer selling Obamacare plans in the state for 2018.
Insurers have until Sept. 27 to decide whether they will sell plans on the exchanges. AHIP included several other requests in its written testimony, asking that any changes made to the law remain in place for two years, and that Congress consider extending federal assistance to help low-income people buy coverage in states that did not expand Medicaid. According to the Kaiser Family Foundation, roughly 2.5 million Americans fall into this gap.
The group recommended against repealing the individual mandate that obligates Americans to buy insurance or pay a fine unless they have an alternative in place. In the past, AHIP has supported a six-month waiting period for people who let their coverage lapse.
The group also wants Congress to promote Obamacare enrollment. Last week the Trump administration announced that it was slashing a navigator program by 90 percent, following what it said were limited results in the number of people who signed up as a result of the program.
Article source: http://www.washingtonexaminer.com/health-insurers-ask-for-two-years-of-obamacare-funding/article/2633484