Some Bipartisan Support for Stabilizing Health Insurance Markets

Although Congress is on August recess, there is some bipartisan support to stabilize the ACA in both the Senate and the House. Lamar Alexander (R-TN), chair of the Senate Health, Education, Labor and Pensions, announced that his panel will work towards stabilization for 2018 when they return in September. The 23 members include several prominent Senators, including Bernie Sanders (I-VT), Elizabeth Warren (D-MA), Lisa Murkowski (R-AK), Susan Collins (R-ME) and Rand Paul (R-KY).

The Problem Solvers Caucus is leading the way in the House for bipartisan solutions for the individual markets as well. The 43 member group is made up of almost equal numbers of Republicans and Democrats. 

Most promising of all, the Senate and House groups have been coordinating efforts on similar quick-fix solutions that include (1) reinstating cost sharing reduction payments, (2) eliminating the medical device tax, (3) providing money and flexibility for states to further bolster their markets through reinsurance programs.

The pressure to act quickly is mounting as insurers announce 2018 rate increases as high as 40% in some states.  Health policy experts and insurers have stated that rate increases would only be in the single digits in many markets were it not for the uncertainty in the government's commitment to uphold the Affordable Care Act.

Republicans Focus on "Skinny" Repeal Now

Having failed to get 50 votes on either full repeal or on repeal and replace, Republicans are now focusing on "skinny repeal." Senators are not sure exactly what will be in the proposal, but it is expected to include a withdrawal of the individual mandate, tax penalty and medical devices tax. This initiative is gathering steam, with Heller and Rand both expressing support.

It would not cut Medicaid funding, but Blue Cross Blue Shield warned that premiums on the individual market would skyrocket without it. The self-employed would be among those hardest hit, especially those with chronic conditions who buy more comprehensive (and expensive) policies.

If it passes the Senate, it would then head to the House where it may be voted on as early as Saturday.

The bronze and silver policy offerings on the individual markets have been challenging for many consumers who balk at paying substantial premiums for high deductible policies. It is most frustrating for those who do not qualify for subsidies. They are paying thousands of dollars annually per family member without receiving much actual healthcare.

Click here for article from The Hill.

Senate Republicans Meet Late into the Night; No Breakthrough, but Some Optimism

President Trump is still insisting that the Senate Republican get an ACA repeal bill to him as soon as possible. McConnell is still planning to have a vote on such a bill next week. Senate Republicans are expressing optimism publicly, but are privately skeptical. The latest wrinkle is that Senator McCain has a brain tumor and there is no set date for his return to the Senate. Bipartisanship is not an option according to Republican party leadership. Meanwhile, millions of Americans are unsure what access they will have to health coverage and at what cost. The exchanges are set to go live with the 2018 policies and pricing in less than 3 months. Read the Politico article here.

Even Health Insurers Oppose the Cruz Amendment

In an unusual move, health insurers have weighed in on the current Senate repeal and replace bill. They state that the Cruz Amendment, which would allow states to waive the 10 essential benefits coverage required under the ACA, would encourage healthy people to buy cheap policies and result in exorbitant premiums for people who would need the more comprehensive coverage. Without the individual mandate or the more comprehensive (and expensive policies), insurance companies would have less money to cover the expenses of the sickest patients.

Read the article