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GOP adds AHCA amendment to allow states to opt out of essential benefits, pre-existing conditions

Insurers operating in states granted waivers would also be able to charge high risk consumers more for premiums.

Susan Morse, Executive Editor

The amendment was proposed by Republican Rep. Tom MacArthur, New Jersey.

Republicans have unveiled a new amendment to the American Health Care Act that would retain the Affordable Care Act's essential benefits but allow states to get waivers to remove the provision to bring down premium rates.

The amendment was proposed by moderate Republican Rep. Tom MacArthur of New Jersey, a former insurance executive.

Moderates may question the amendment's ability for states to get rid of the ACA's requirement to cover consumers who have pre-existing conditions.

[Also: Republicans at home endure boos at heated meetings with constituents over failed healthcare law]

Insurers operating in states granted waivers would also be able to charge high risk consumers more for premiums.

The amendment would repeal a portion of a March 23 amendment to the AHCA that would have allowed states to define the essential health benefits for purposes of determining premium tax credits but not for other purposes, according to Timothy Jost's blog in Health Affairs. In its place, the amendment would allow states to apply for waivers that would bring down the cost of premiums.

America's Health Insurance Plans said Wednesday that it is reviewing the amendment.

[Also: No healthcare vote this week, House Speaker Paul Ryan says]

Andy Slavitt, former acting administrator of the Centers for Medicare and Medicaid Services, who has been touting President Obama's Affordable Care Act, has been tweeting his opposition to the amendment.

In one Slavitt said, "Last count 24 million would lose coverage. Premiums would increase 15-20 percent, much more for older. Much more for rural. And tax credits lower."

The GOP is looking for a compromise healthcare plan that would unite moderate and conservative members of the Freedom Caucus behind a bill to repeal and replace the Affordable Care Act.

In late March, House Speaker Paul Ryan pulled the bill he put forward, the American Health Care Act, when it became clear there was not enough support among Republicans to pass the bill.

[Also: Trump's job creation goal could clash with 'repeal and replace' promise]

The MacArthur amendment was circulated Tuesday night as members of Congress were returning from break, Politico reported. For more than two weeks Vice President Mike Pence, North Carolina Representative and Freedom Caucus leader Mark Meadows, and MacArthur have reportedly worked behind-the-scenes on a plan.

There is no reported date for a vote, but the amendment was unveiled as President Trump reaches his first 100 days in office, and during a week when congressional leaders are trying to come together to pass a spending bill before a Friday deadline and a government shutdown.

Before the break, a House Rules Committee approved in markup an  amendment to the American Health Care Act sponsored by conservative Reps. Gary Palmer of Alabama and David Schweikert of Arizona, that would create a federal risk sharing program for insurers. Ryan said the idea, modeled after Maine program, has support of both moderates and the conservative Freedom Caucus.

Twitter: @SusanJMorse