Underwood to Azar on Proposed Rule That Would Increase Health Insurance Costs: “These proposed policy changes are unacceptable”

WASHINGTON – Congresswoman Lauren Underwood (IL-14) expressed concern that a proposed rule by the U.S. Department of Health and Human Services (HHS) would increase premiums for consumers who purchase health insurance though the exchange created by the Affordable Care Act. In a letter to HHS Secretary Alex Azar, Underwood also warned that the rule would also increase out-of-pocket costs for consumers with private insurance—including some employer-sponsored health care plans.

"I am specifically concerned that the proposed policy changes will increase net premiums to consumers, increase total out-of-pocket costs for millions of Americans enrolled in private health plans, including people with employer-sponsored health insurance, and result in thousands of people losing health coverage," Congresswoman Underwood wrote.

"According to the Department's impact analysis, these premium increases would cause 100,000 people to drop their coverage because it would no longer be affordable...This runs counter to the goals of the Affordable Care Act: to increase access to quality, affordable health insurance and health care. These proposed policy changes are unacceptable."

The full letter can be found below.

February 19, 2019

Secretary Alex Azar

U.S. Department of Health & Human Services

200 Independence Avenue, S.W.

Washington, D.C. 20201

RE: Patient Protection and Affordable Care Act; HHS Notice of Benefit and Payment Parameters for 2020 (CMS–9926–P)

Dear Secretary Azar,

I write to express my strong concern with the Notice of Benefit and Payment Parameters for 2020. I am specifically concerned that the proposed policy changes will increase net premiums to consumers, increase total out-of-pocket (OOP) costs for millions of Americans enrolled in private health plans, including people with employer-sponsored health insurance, and result in thousands of people losing coverage.

This proposal would reduce the value of advanced premium tax credits (APTC) for millions of low-income Americans by adjusting the calculation of premium adjustment percentage. If the Department of Health and Human Services finalizes the rule as proposed more than 4 in 5 individuals--7.3 million people--who buy health insurance in the individual market will pay higher premiums because the value of their tax credits would be smaller. According to the Department's impact analysis, these premium increases would cause 100,000 people to drop their coverage because it would no longer be affordable. Not only would the NBPP cause premiums to increase, but it would also increase maximum out of pocket costs for anyone enrolled in private market insurance. This means that the people who reach their out of pocket maximums—the individuals and families most in need of health care—would have to spend between $200 and $400 more per year on out of pocket costs. Again, the Administration's own analysis shows that this rule will save the federal government about $1 billion per year by reducing the number of people who are insured, and reducing the value of tax credits people need to buy insurance. This runs counter to the goals of the ACA: to increase access to quality, affordable health insurance and health care.

These proposed policy changes are unacceptable. The American people made their priorities known in November by electing new members to the House of Representatives who will protect access to quality, affordable health care. They sent us here to protect and strengthen the ACA by reducing premiums and out of pocket costs. This proposed rule does the opposite. I strongly urge the Department to not finalize the NBPP as written, and instead implement policies that will make quality, affordable health care more accessible to everyone.

Sincerely,

Rep. Lauren Underwood

Contact: LaurenUnderwoodPress@mail.house.gov