AHIP, AHA and others appeal to Congress to include cost-sharing reduction payments, reinsurance, in omnibus bill
Several industry associations call for provisions that would extend the market stabilization programs in the omnibus appropriations bill.
As the deadline for an omnibus appropriations bill nears this Friday, America's Health Insurance Plans, the American Hospital Association and six other healthcare organizations have again asked Congressional leaders to include cost-sharing reduction payments and a reinsurance program in the legislation.
Both CSRs and reinsurance were market stabilization programs established under the Affordable Care Act.
[Also: AHIP wants Congress to enact MACPAC recommendations to streamline managed Medicaid]
President Donald Trump discontinued federal CSR funds. CSRs helped insurers to pay deductibles and other out-of-pockets costs for lower-income beneficiaries. Without CSRs, insurers must raise the cost of premiums in the ACA market by about 20 percent, they have said, as the ACA mandates that they offset those costs.
Reinsurance pays insurers for taking on higher-cost individuals after a certain threshold is met. The temporary, three-year program expired in 2016.
Reestablishing both programs could lower premiums in the ACA market by 21 percent in 2019, and increase enrollment by over 1.5 million, the March 19 letter said. By 2020, premiums could be 40 percent lower, according to an Avalere Health report cited in the letter.
Insurers will begin to begin to file their 2019 individual market premium rates in October.
"Without Congressional action now, the plans offered to Americans will be nearly 30 percent more expensive than they would be otherwise," the letter said.
AHIP and the others sent the letter to Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Paul Ryan and House Minority Leader Nancy Pelosi.
In addition to AHIP, it was signed by the AHA, the American Academy of Family Physicians, the American Benefits Council, the American Medical Association, Blue Cross Blue Shield Association, the Federation of American Hospitals and the U.S. Chamber of Commerce.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
