Underwood Legislation to Reduce Health Insurance Premiums Included in Speaker’s Historic New Legislation to Expand Access to Quality, Affordable Health Care

The Patient Protection and Affordable Care Enhancement Act would reduce health insurance premiums and out-of-pocket spending on prescription drugs, protect Americans with preexisting conditions, and reduce health disparities

WASHINGTON— Today, Representative Lauren Underwood (IL-14) joined members of the House of Representatives to unveil historic legislation to expand access to quality, affordable health care. The Patient Protection and Affordable Care Enhancement Act would make health care more affordable by improving advance premium tax credits, promoting reinsurance, and lowering prescription drug costs. The legislation includes Underwood's legislation to reduce insurance premiums, the Health Care Affordability Act.

In March 2019, Underwood introducedThe Health Care Affordability Act (H.R. 1868), which would expand eligibility for premium tax credits to more families by lifting the cap on eligibility. Currently, families with incomes above 400 percent of the federal poverty level ($104,800 for a family of four in 2020) and increase the size of the tax credit for all income brackets.

"Affordable health care is crucial for our community in northern Illinois. In the face of a pandemic that could cause nearly 27 million Americans to lose their insurance, it is now more important than ever that we act boldly to reduce insurance premiums and bring affordable care within reach for every American," said Rep. Underwood. "The Patient Protection and Affordable Care Enhancement Act delivers on a promise to the people, and for the people: ensuring every one of our fellow citizens has access to quality, affordable health care.

Under the Patient Protection and Affordable Care Enhancement Act, residents of Illinois' 14th Congressional District would be able to buy a Marketplace health plan for 8.5% of their income or less, which would reduce premium costs by hundreds or thousands of dollars for the typical consumer who buys their own insurance. For example:

• A 60-year-old couple with a household income of $68,000 per year currently spends approximately $26,610 per year on a silver-level plan—more than a third of their income. Under the Patient Protection and Affordable Care Enhancement Act, they would pay approximately $5,780 per year, representing annual savings of more than $20,000.
• A family of four with a household income of $105,000 per year who currently spends about $26,188 per year on health insurance would pay approximately $8,928 per year with the Patient Protection and Affordable Care Enhancement Act, a decrease in spending on premiums of more than 70 percent.

Additionally, the Patient Protection and Affordable Care Enhancement Act would:

• Negotiate lower prescription drug prices through the Elijah E. Cummings Lower Drug Costs Now Act, (H.R. 3);
• Incentivize states that have not expanded Medicaid to do so;
  • Combat inequity in health coverage faced by communities of color in part by requiring states to extend Medicaid coverage to new mothers for 1-year post-partum.

• Reverse the expansion of short-term, limited-duration insurance, commonly known as "junk plans" to protect people with preexisting conditions and coverage of essential medical treatments and drugs.

A one-pager of the legislation can be found here.