Should Trump’s Action Loosening Restrictions on State Innovation Waivers Under Obamacare Be Repealed? (H.R. 986)
Do you support or oppose this bill?
What is H.R. 986?
(Updated August 8, 2019)
This bill would repeal an October 2018 guidance issued by the Dept. of Health and Human Services (HHS) related to “State Relief and Empowerment Waivers” under the Affordable Care Act (aka Obamacare). The guidance loosened restrictions of Section 1332 state innovation waivers, which became available to states in January 2017 under the ACA, by expanding the definition of coverage to include short-term plans and allowing existing state legislation about enforcing Obamacare satisfied the waiver requirement.
Argument in favor
Trump’s executive action made it easier for states to use Obamacare waivers to take actions that ultimately weaken protections for individuals with pre-existing conditions. It must be reversed, and this bill would do just that.
Argument opposed
Broadening the use of Obamacare’s state innovation waivers has created opportunities for several states — including Alaska, Minnesota, and Oregon — to take actions that lowered health insurance premiums, giving consumers more choices and saving them money.
Impact
Health insurance consumers in states that have received ACA innovation waivers; health insurers; state regulators; and HHS.
Cost of H.R. 986
The CBO estimates that this legislation would have an insignificant impact on the federal budget because the state innovation waivers are required to be budget neutral.
Additional Info
In-Depth: Rep. Annie Kuster (D-NH) introduced this bill to “protect Americans with pre-existing conditions by preventing the promotion of junk health plans, which often lack protections for these Americans.” She explained:
“The Trump Administration has done its very best to undermine the Affordable Care Act and access to quality healthcare for millions of Americans. The ACA was a watershed piece of legislation that ensured protections for those who had been denied access to health insurance in the past because of pre-existing conditions. Our legislation would help to ensure that those protections do not fall victim to partisan attacks. I’m committed to working with my colleagues to strengthen and improve access to quality, affordable health insurance for all Americans.”
Original cosponsor Rep. Joe Courtney (D-CT) added:
“Time and time again this Administration has eroded key ACA consumer protections that are the bedrock of the law. The 1332 guidance the Administration issued further degrades the original intent of the ACA by creating a backdoor to provide Americans with coverage that doesn’t meet the law’s standards and weakens protections for people with pre-existing conditions.”
House Republicans expressed opposition to this bill and support for the Trump administration’s update to the innovation waivers regulation in this bill’s committee report, writing:
“To date, eight States have active waivers, all of which were approved under the Obama Administration guidance. Among these States, for 2018 alone: Alaska experienced a 26 percent premium reduction, Minnesota saw its rate increase reduced to 11.3 percent, significantly less than its 2017 57 percent increase; and, Oregon’s rate changes ranged from -1.6 to 14.8 percent, dropping to a range of -9.6 to 10.1 percent for 2019.
While this bill has a catchy title, it does little to protect individuals living with pre-existing health care conditions. House Republicans continue to support pre-existing condition protections and have offered solutions to give patients this assurance outside of the unpopular, unaffordable, and unconstitutional framework.”
This legislation was reported favorably by the House Energy & Commerce Committee on a voice vote, and has the support of 19 Democratic cosponsors and several healthcare trade organizations.
Media:
Summary by Eric Revell
(Photo Credit: iStock.com / Rostislav_Sedlacek)
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