Mr. Speaker, I thank the gentleman from Texas (Mr. Sessions), my good friend, the chairman of the Rules Committee for yielding me the customary 30 minutes, and I yield myself such time as I may…
Mr. Speaker, I thank the gentleman from Texas (Mr. Sessions), my good friend, the chairman of the Rules Committee for yielding me the customary 30 minutes, and I yield myself such time as I may consume.
(Mr. McGOVERN asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I want to begin with some good news for my colleagues here in the House and for the American people, and that is my Republican colleagues have decided to pull their abysmal repeal and replace bill with regard to the Affordable Care Act from consideration this week. We can all breathe a sigh of relief. The American people dodged another Republican bullet here.
Their bill, as my colleagues all know, would have caused 24 million Americans to lose their health care. It would have cut Medicaid by over $800 billion, and then they would have given a trillion-dollar tax break to the richest people in the country. It would have compromised Medicare. It would have
basically denied Americans essential health protections that they currently are guaranteed in their health insurance; things like emergency room care, maternity care, mental health care. I can go on and on.
Then with their latest addition to their abysmal bill, they would have even allowed insurance companies to once again discriminate against Americans with preexisting conditions; something that they said that they wanted to protect, yet their adjustments to their abysmal healthcare bill would have allowed Americans with preexisting conditions to be discriminated against.
I mean, when we talk about essential health benefits, I want to stress the word ``essential.'' They are important, yet they are going down a road that I think is disastrous for millions of American people.
Let us begin by being thankful that we are not going to do great harm to our country this week. Now, there is always next week--we have to worry about that--but at least this week they had the common sense to pull this terrible healthcare bill that they have been working on for so long. Let's hope that we never ever see the bill. I think it is important for people to understand what is at stake. There is an awful lot at stake for tens of millions of Americans here today all across the country.
Mr. Speaker, that brings us to today. Let us be clear about why we are here again with yet another continuing resolution, the 29th--yes, you heard that right, the 29th--continuing resolution since Republicans have taken control of the House.
Republicans have nobody to blame for this mess but themselves. They control the White House, they control the Senate, and, unfortunately, they control this House. They were even the ones who set this artificial deadline of April 28 in the first place. That was after Republicans gave themselves a 2-month extension and then a 5-month extension.
Mr. Speaker, this should have all been sorted out last fall, but for 7 months Republicans have played games and delayed and bickered amongst themselves about government funding and health care and other priorities.
What do they have to show for it?
Nothing.
Now, maybe the delay was caused by this obsession from the Republican Conference with repealing the Affordable Care Act and ripping health care away from 24 million Americans. Maybe Republicans have been too busy trying to defund Planned Parenthood, trying to undo important consumer protections put in place by Democrats, trying to tear down commonsense rules to protect public safety and the environment.
Perhaps if Republicans had been responsibly working with Democratic leaders during the past 7 months, we could have already funded our government and we could be getting to work on other things that our constituents sent us here to do, like creating jobs and repairing our crumbling infrastructure.
We could have avoided events that have transpired during the past 48 hours: an emergency Rules Committee meeting, another Republican martial law rule, and threats of a Saturday session.
Mr. Speaker, to put it bluntly, this is about Republican dysfunction and incompetence, plain and simple. If Congress could be sued by the American people for malpractice, we would be in big trouble. This is indefensible. I am sure people who are watching these proceedings are scratching their heads saying: What the hell is going on in the people's House?
For the life of me, I cannot understand why we are constantly at the edge of a cliff. This Republican leadership jumps from one manufactured crisis to the next, and has proven ineffective at carrying out even its most basic responsibilities, like keeping the government's lights on and funding programs that help our constituents.
But don't take it from me. Listen to what some of my Republican colleagues are saying about the priorities of their own leadership. Representative Rooney, a Republican from Florida, said:
``I have been in this job 8 years, and I am wracking my brain to think of one thing our party has done that has been something positive, that has been something other than stopping something else from happening.''
Representative Mario Diaz Balart from Florida commented:
``It is pretty evident that we don't have the votes among Republicans to, in essence, do anything that is real.''
Mr. Speaker, when you have members of your own party making these kinds of statements, you really have to question the capacity of the Speaker and his leadership team to govern effectively.
Mr. Speaker, I very much regret that we are here today to consider another short-term CR. One week--that is all this bill does, keeps the government running for one additional week. Our constituents expect and deserve better from their elected officials.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I have a number of the day for my colleagues. I feel like I am on Sesame Street. This is the 29th closed rule this year. This is the 29th CR of this Republican majority. And the government is about to shut down when the calendar flips after midnight, and it is the 29th. So 29 must be the number of the day.
I want to wish the gentleman from Oklahoma (Mr. Cole) a happy birthday. Maybe he is 29, so it all kind of fits together.
I would just say to my colleagues, as an indication of how dysfunctional this place is: How do you get 29 closed rules in 4 months? How do we run a place in such a closed manner?
This is supposed to be a deliberative body. We are supposed to be debating issues. People are supposed to have a give-and-take on matters of importance. We have had 29 closed rules in the first 4 months of this year. It is unprecedented.
As I have been saying time and time again, when you have a lousy process, you usually end up with lousy legislation. I think that is the case with regard to the repeal and replace of the Affordable Care Act.
Here we are at the last minute trying to keep the government open for a week so we could have more time to keep it open for the rest of the year. I mean, this is not the way this place should be run.
Mr. Speaker, I yield 4 minutes to the gentlewoman from Florida (Ms. Castor), a former member of the Rules Committee.
I yield an additional 1 minute to the gentlewoman from Florida.
Mr. Speaker, I yield myself the balance of my time to close.
Mr. Speaker, I think it is clear that there is a lot of frustration on our side because of what is obviously a dysfunctional House. The fact that we are here again at the last minute trying to just keep the government running really is unfortunate. It is sad because it is not like we didn't know about this date. We have known about it for a long time.
My Republicans friends set this date. They have had months and months to figure out a way to keep the government running. They, again, are in control of the House. They are in control of the Senate. They are in control of the White House. Once again, we have a manufactured crisis where we are right at the edge of a cliff, and the best we could do today is kick the can down the road for a week and we will have this little debate again next week.
Perhaps if the leadership of this House actually focused on the people's business instead of on legislation that is about messaging or press releases, perhaps if they focused on the people's business rather than trying to undermine basic healthcare protections for people, we wouldn't have these crises all the time.
I said at the beginning of my remarks that we can breathe a sigh of relief today because my friends on the Republican side are not bringing up their abysmal repeal and replace of the Affordable Care Act bill.
They have been changing it and changing it, and there was some rumor, President Trump was saying that they would probably bring a bill up to pass it in his first 100 days because somehow it is more important to do something in 100 days than it is to get it right. But, nonetheless, they added another provision which they claim makes it more palatable to their Members. But I want my colleagues to understand that what they have done is made a bad bill worse.
The American College of Physicians sent us a letter to all Members, Democrats and Republicans, and I will just read one sentence from it. ``This amendment'' that my Republican friends added to their healthcare bill ``would make the harmful AHCA even worse by creating new coverage barriers for patients with preexisting conditions and weakening requirements that insurers cover essential benefits.''
I include in the Record the letter from the American College of Physicians.
American College of Physicians,
April 24, 2017.
Hon. Paul Ryan,
Speaker, House of Representatives,
Washington, DC.
Hon. Mitch McConnell,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, House of Representatives,
Washington, DC.
Hon. Charles Schumer,
Minority Leader, U.S. Senate,
Washington, DC.
Dear Speaker Ryan, Minority Leader Pelosi, Majority Leader
McConnell, and Minority Leader Schumer: On behalf of the
American College of Physicians (ACP), I am writing to urge
Congress to move away from the harmful changes to patient
care that would occur if the American Health Care Act (AHCA)
were to become law, and to instead work for bipartisan
solutions to improve the Affordable Care Act (ACA) rather
than repealing and replacing it. We believe that the AHCA,
which would repeal and replace the most important coverage
and consumer protections created by the ACA, is so
fundamentally flawed that it cannot be made acceptable. We
understand that the leadership in the House of
Representatives continues to explore ways to bring a modified
version of the AHCA to a vote, based on a draft amendment
reportedly being developed by Representatives MacArthur and
Meadows, a summary of which was made available to the public
through news organizations. This amendment would make the
harmful AHCA even worse by creating new coverage barriers for
patients with pre-existing conditions and weakening
requirements that insurers cover essential benefits.
The American College of Physicians is the largest medical
specialty organization and the second-largest physician group
in the United States. ACP members include 148,000 internal
medicine physicians (internists), related subspecialists, and
medical students. Internal medicine physicians are
specialists who apply scientific knowledge and clinical
expertise to the diagnosis, treatment, and compassionate care
of adults across the spectrum from health to complex illness.
The draft MacArthur-Meadows amendment would create what is
known as the ``Limited Waiver Option'' that would allow
states to eliminate or severely weaken vital ACA Title I
consumer protections--specifically, community rating and
essential health benefits (EHBs)--returning the country to
the pre-ACA days when persons with pre-existing
``declinable'' medical conditions in most states were priced
out of the market and the insurance products available in the
individual market did not cover medically necessary services.
Specifically;
The MacArthur-Meadows amendment would create an option for
states to obtain Limited Waivers from certain federal
standards that would gut existing law consumer protections.
Based on a summary of the draft amendment, states could seek
Limited Waivers for:
Essential Health Benefits (EHBs)
Community-rating rules, except for the following
categories, which are not waivable: Gender or Age (except for
reductions of the 5:1 age ratio previously established) or
Health Status (unless the state has established a high-risk
pool or is participating in a federal high-risk pool)
To obtain the waiver, states would only need to ``attest
that the purpose of their requested waiver is to reduce
premium costs,
increase the number of persons with healthcare coverage, or
advance another benefit to the public interest in the state,
including the guarantee of coverage for persons with
preexisting medical conditions. The Secretary shall approve
applications within 90 days of determining that an
application is complete.'' [Emphasis added in italics].
In other words, as long as a state attested that there was
a ``benefit to the public,'' insurers would be once again
allowed to charge more to people with pre-existing
conditions, or decline to cover needed benefits like
physician and hospital visits, maternity care and
contraception, mental health and substance use disorder
treatments, preventive services, and prescription drugs.
This would take us back to the days when people had to fill
out intrusive insurance company applications to document
their previous health history, even before being advised what
the premium would be based on their individual health risk.
Unlike community rating, which bases premiums based on the
expected costs associated with all persons in the insurance
pool (adjusted only by age, tobacco use, and family size),
the Limited Waiver would again allow insurers in states that
obtain a waiver to again charge people exorbitant and
unaffordable premiums for their pre-existing conditions.
Before the ACA, insurance plans sold in the individual
insurance market in all but five states typically maintained
lists of so-called ``declinable'' medical conditions--
including asthma, diabetes, arthritis, obesity, stroke, or
pregnancy, or having been diagnosed with cancer in the past
10 years. Even if a revised bill would not explicitly repeal
the current law's guaranteed-issue requirement--which
requires insurers to offer coverage to persons with pre-
existing conditions like these--guaranteed issue without
community rating allows insurers to charge as much as they
believe a patient's treatment will cost. The result would be
that many patients with pre-existing conditions would be
offered coverage that costs them thousands of dollars more
for the care that they need, and in the case of patients with
expensive conditions like cancer, even hundreds of thousands
more.
An amendment to the AHCA reported out of the Rules
Committee on April 6th to establish a ``Federal Invisible
Risk Sharing Program,'' which would create a fund that states
could use to reimburse insurers for some of the costs
associated with insuring sicker patients, would not offset
the harm done to patients with pre-existing conditions by
allowing the Limited Waiver of community rating and essential
benefit protections. The pre-ACA experience with high-risk
pools was that many had long waiting lists, and offered
inadequate coverage with high deductibles and insufficient
benefits. Unless a national high-risk pool is supported with
a massive infusion of funding it will not be sufficient to
cover the millions of people with pre-existing conditions
that would be denied or charged more for coverage under the
AHCA. One paper estimates that a national high-risk pool
would cost $178.1 billion a year, roughly $176.4 billion more
than the annual funding provided to the Invisible Risk
Sharing Program. Also, shifting people out of the existing
health insurance marketplace to a high-risk pool would
undermine the assurance that enrollees could keep their
existing coverage.
The Limited Waiver Option will also allow states to seek
waivers from the essential health benefits required of all
plans sold in the individual insurance market, with the
result that millions of patients will be at risk of losing
coverage for essential services like maternity care, cancer
screening tests and treatments, prescription drugs,
preventive services, mental health and substance use disorder
treatments, and even physician visits, prescription drugs and
hospitalizations.
Prior to passage of the ACA, 62% of individual market
enrollees did not have coverage of maternity services, 34%
did not have substance-use disorder-services, 18% did not
have mental-health services and 9% did not have coverage for
prescription drugs. A recent independent analysis found that
the AHCA's repeal of current law required benefits would
result in patients on average paying $1,952 more for cancer
drugs; $1,807 for drugs for heart disease; $1,127 for drugs
to treat lung diseases; $1,607 for drugs to treat mental
illnesses; $4,940 for inpatient admission for mental health;
$4,555 for inpatient admission for substance use treatment;
and $8,501 for maternity care. Such increased costs would
make it practically impossible for many patients to avail
themselves of the care they need. The result will be delays
in getting treatment until their illnesses present at a more
advanced, less treatable, and more expensive stage, or not
keeping up with life-saving medications prescribed by their
physicians.
Allowing states to eliminate the EHB will threaten our
nation's fight against the opioid epidemic. A study concluded
that with repeal of the ACA, ``approximately 1,253,000 people
with serious mental disorders and about 2.8 million Americans
with a substance use disorder, of whom about 222,000 have an
opioid disorder, would lose some or all of their insurance
coverage.'' Finally, allowing states to drop important
benefits like maternity, substance use disorder treatment,
and preventive services will do little to reduce premiums. A
report by Milliman found that the main drivers of premium
costs were ambulatory patient services, hospitalization, and
prescription drugs. These are crucial services that form the
core of any health insurance plan.
To be clear: while some younger and healthier persons might
be offered lower premiums in states that obtained a ``Limited
Waiver'' of community-rating and essential health benefits,
it would be at the expense of making coverage unaffordable
for those who need it most, older and sicker persons, and
result in skimpy ``bare-bones'' insurance for many others
that does not cover the medical care they would need if and
when they get sick.
Finally, even without the Limited Waiver Amendment, ACP
continues to believe that the AHCA has numerous other
provisions and policies that that will do great harm to
patients including:
The phase-out of the higher federal match in states that
have opted to expand Medicaid and the ban on non-expansion
states being able to access the higher federal contribution
if they choose to expand Medicaid;
Converting the shared federal-state financing structure for
Medicaid to one that would cap the federal contribution per
enrollee;
Providing states with a Medicaid block grant financing
option;
Eliminating EHBs for Medicaid expansion enrollees;
Imposing work or job search requirements on certain
Medicaid enrollees;
Regressive age-based tax credits, combined with changes
that will allow insurers to charge older people much higher
premiums than allowed under current law;
Continuous coverage requirements for patients with pre-
existing conditions;
Legislative or regulatory restrictions that would deny or
result in discrimination in the awarding of federal grant
funds and/or Medicaid and Children's Health Insurance Program
funding to women's health clinics that are qualified under
existing federal law for the provision of evidence-based
services including, but not limited to, provision of
contraception, preventive health screenings, sexually
transmitted infection testing and treatment, vaccines,
counseling, rehabilitation, and referrals, and;
Elimination of the Prevention and Public Health Fund, which
provides billions in dollars to the enters for Disease
Control and Prevention to prevent and control the spread of
infectious diseases.
The College strongly believes in the first, do no harm
principle. Therefore, we continue to urge that Congress move
away from the fundamentally flawed and harmful policies that
would result from the American Health Care Act and from the
changes under consideration--including the proposed ``Limited
Waiver'' amendment--that would make the bill even worse for
patients. We urge Congress to instead start over and seek
agreement on bipartisan ways to improve and build on the ACA.
The College welcomes the opportunity to share our ideas for
bipartisan solutions that would help make health care better,
more accessible, and more affordable for patients rather than
imposing great harm on them as the AHCA would do.
Sincerely,
Jack Ende, MD, MACP,
President.
Mr. Speaker, we have a press release from the American Hospital Association. Their line here is: ``Our top concern is what this change could mean for older and sicker patients, including those with preexisting conditions such as cancer patients and those with chronic conditions'' could suffer. ``This amendment proposed this week would dramatically worsen the bill.''
I include in the Record the American Hospital Association press release.
[From the American Hospital Association--April 27, 2017]
Statement on the American Health Care Act
(By Rick Pollack, President and CEO, American Hospital Association)
The latest version of the AHCA continues to put health
coverage in jeopardy for many Americans. Our top concern is
what this change could mean for older and sicker patients,
including those with pre-existing conditions, such as cancer
patients and those with chronic conditions. For these
reasons, along with our previously stated concerns about the
AHCA, we cannot support the bill. However, we urge Congress
to continue to work with stakeholders on a solution that
provides meaningful coverage.
The amendment proposed this week would dramatically worsen
the bill. The changes included put consumer protections at
greater risk by allowing states to waive the essential health
benefit standards, which could leave patients without access
to critical health services and increase out-of-pocket
spending. This could allow plans to set premium prices based
on individual risk for some consumers, which could
significantly raise costs for those with pre-existing
conditions.
Additionally, the Congressional Budget Office has not yet
scored the amendment. However, CBO previously projected that
the AHCA would result in 24 million fewer people covered in
2026. It is unlikely this amendment would improve these
coverage estimates.
As the backbone of America's health safety-net, hospitals
and health systems must protect access to care for those who
need it and ensure that the most vulnerable patients are not
left behind. The AHCA continues to fall far short of that
goal.
Mr. Speaker, the AARP issued yet another statement saying: ``This harmful legislation still puts an age tax on older Americans and puts vulnerable populations at risk through a series of backdoor deals that attempts to shift responsibility to States.''
I include in the Record the statement from the AARP.
AARP Maintains Opposition to Amended Health Bill
Age Tax, Weakening Medicare, Backdoor Cuts to Preexisting Condition
Population Would Harm American Families
Washington, DC.--AARP Executive Vice President Nancy
LeaMond released the following statement today in response to
the amended House bill that would create an ``Age Tax,''
increase premiums, eliminate protections for pre-existing
conditions, cut the life of Medicare, and give sweetheart
deals to big drug and insurance companies. In a letter sent
to all 435 members of the U.S. House of Representatives, AARP
restated its strong opposition to the bill and urged each
Representative to vote `No' on the proposed legislation. AARP
believes this legislation will have a significant harmful
impact on the health of millions of older Americans ages 50
to 64, as well as other vulnerable groups, including poor
seniors and disabled children and adults:
``This harmful legislation still puts an Age Tax on older
Americans and puts vulnerable populations at risk through a
series of backdoor deals that attempts to shift
responsibility to states. Older Americans need affordable
health care services and prescriptions. This legislation
still goes in the opposite direction, increasing insurance
premiums for older Americans and not doing anything to lower
drug costs.
``AARP continues to oppose legislation that would impose an
Age Tax, eliminate protections for preexisting conditions,
weaken Medicare, erode seniors' ability to live independently
because of billions of dollars in Medicaid cuts, and give
sweetheart deals to drug and insurance companies while doing
nothing to lower the cost of health care or prescription
drugs.
``We intend to let all 38 million of our members know
exactly how their Representative votes on this bill in
newsletters, in our publications, on social media and in
other formats. Our members care deeply about their health
care and have told us repeatedly that they want to know where
their elected officials stand.''
Past statements and releases about this bill can be found
here, here, here, and here. Public policy fact sheets about
the Age Tax and other harmful policies can be found here.
AARP's full letter to the House of Representatives can be
found below:
April 26, 2017.
Dear Representative: AARP, with its nearly 38 million
members in all 50 States and the District of Columbia, Puerto
Rico, and U.S. Virgin Islands, is a nonpartisan, nonprofit,
nationwide organization that helps people turn their goals
and dreams into real possibilities, strengthens communities
and fights for the issues that matter most to consumers and
families such as healthcare, employment and income security,
retirement planning, affordable utilities and protection from
financial abuse.
We write to again share our opposition to the pending
American Health Care Act (AHCA) and urge you to vote NO.
Throughout consideration of the AHCA, we have been expressing
serious concerns about the impact that this legislation will
have on older Americans. The Congressional Budget Office
(CBO)'s last estimate further demonstrates the harmful impact
of this bill on older Americans and some of our most
vulnerable. Specifically, we are concerned that the American
Health Care Act will weaken the fiscal sustainability of
Medicare; dramatically increase premium and out-of-pocket
costs for 50-64 year olds purchasing coverage on the
individual insurance market; substantially increase the
number of Americans without insurance; and put at risk
millions of children and adults with disabilities and poor
seniors who depend on the Medicaid program to access long-
term services and supports and other benefits. In addition,
changes under consideration that would allow states to waive
important consumer protections--such as allowing insurance
companies to once again charge Americans with pre-existing
conditions more because they've had cancer, diabetes or heart
disease--would make this bad bill even worse.
Our members and others 50 years of age and older care
deeply about health care and want to know where their elected
leaders stand. Recognizing the importance of the upcoming
vote on the American Health Care Act, AARP intends to inform
our members, and others over age 50, how their elected
officials voted. We'll communicate the results of the vote in
our widely-circulated publications, in email alerts, in our
online channels, and through the media. Again, we urge all
Representatives to vote NO on the American Health Care Act in
its current form.
Medicare
Our members and older Americans believe that Medicare must
be protected and strengthened for today's seniors and future
generations. We strongly oppose any changes to current law
that could result in cuts to benefits, increased costs, or
reduced coverage for older Americans. According to the 2016
Medicare Trustees report, the Medicare Part A Trust Fund is
solvent until 2028 (11 years longer than pre-Affordable Care
Act (ACA)), due in large part to changes made in the ACA. We
have serious concerns that the American Health Care Act
repeals provisions in current law that have strengthened
Medicare's fiscal outlook, specifically, the repeal of the
additional 0.9 percent payroll tax on higher-income workers.
Repealing this provision would remove $117.3 billion from the
Hospital Insurance trust fund over the next ten years, would
hasten the insolvency of Medicare by up to four years, and
diminish Medicare's ability to pay for services in the
future.
Prescription Drugs
Older Americans use prescription drugs more than any other
segment of the U.S. population, typically on a chronic basis.
We are pleased that the bill maintains the Medicare Part D
coverage gap (``donut hole'') protections created under the
ACA. Since the enactment of the law, more than 11.8 million
Medicare beneficiaries who have fallen into the coverage gap
have saved over $26.8 billion on the improved coverage for
prescription drug costs due to closure of the donut hole. We
do have strong concerns that the fee on manufacturers and
importers of branded prescription drugs, which currently is
projected to add $24.8 billion to the Medicare Part B trust
fund between 2017 and 2026, will be repealed by the American
Health Care Act. Rather than repeal this fee for Medicare,
AARP believes Congress must do more to reduce the burden of
high prescription drug costs on consumers and taxpayers, and
we would be willing to work with you on bipartisan solutions.
Individual Private Insurance Market
About 6.1 million Americans age 50-64 currently purchase
insurance in the non-group market, and nearly 3.2 million are
currently eligible to receive subsidies for health insurance
coverage through either the federal health benefits exchange
or a state-based exchange (exchange). We have seen a
significant reduction in the number of uninsured since
passage of the ACA, with the number of 50-64 year old
Americans who are uninsured dropping by half. We are deeply
concerned that the AHCA would be a significant step backwards
and result in millions of older Americans who cannot afford
their health care, including many simply losing their health
care.
Based on CBO estimates, approximately 14 million Americans
will lose coverage next year, while a total of 24 million
Americans would lose coverage over the next 10 years. This is
especially troubling given that in the CBO and Joint
Committee on Taxation's (JCT) assessment ``the non-group
(individual) market would probably be stable in most areas
. . . under current law.''
Affordability of both premiums and cost-sharing is critical
to older Americans and their ability to obtain and access
health care. A typical 50-64 year old seeking coverage
through an exchange has a median annual income of under
$25,000 and already pays significant out-of-pocket costs for
health care. We have serious concerns--reinforced by the CBO
estimate--that the bill under consideration will dramatically
increase health care costs for 50-64 year olds who purchase
health care through an exchange due both to the changes in
age rating from 3:1 (already a compromise that requires
uninsured older Americans to pay three times more than
younger individuals) to 5:1 and reductions in current tax
credits for older Americans. CBO concluded that the bill will
substantially raise premiums for older people and force many
into lower quality plans.
Age rating plus reduced tax credits equal an unaffordable
age tax. Our previous estimates on the age-rating change
showed that premiums for current coverage could increase by
up to $3,200 for a 64 year old, while reducing premiums by
only about $700 for a younger enrollee. Significant premium
increases for older consumers will make insurance less
affordable, will not address their expressed concern about
rising premiums, and only encourage a small increase in the
enrollment numbers for younger persons.
In addition to increasing premiums from the age rating
change, the bill reduced the tax credits available for older
Americans to help purchase insurance. We estimate that the
bill's changes to current law's tax credits alone could
increase premium costs for a 55-year old earning $25,000 by
more than $2,300 a year. For a 64-year old earning $25,000,
that increased premium rises to more than $4,400 a year, and
more than $5,800 for a 64-year old earning $15,000.
Overall, both the bill's tax credit changes and 5:1 age
rating would result in skyrocketing cost increases for older
Americans. In their analysis, CBO found that a 64 year old
earning $26,500 a year would see their premiums increase by
$12,900--758 percent--from $1,700 to $14,600 a year. In
addition, older workers could also face higher out-of-pocket
costs because the bill eliminates cost-sharing subsidies
which help lower-income Americans with their co-pays and
deductibles. It cannot be overstated how much this bill would
erase recent gains in health care coverage and affordability
for 50-64 year olds, leading to large spikes in the number of
uninsured and financial hardship for millions of older
Americans.
Current law prohibits insurance companies from
discriminating against individuals due to a preexisting
condition. We are extremely concerned that the bill may now
repeal pre-
existing condition protections and would once again allow
insurance companies to charge Americans more due to a pre-
existing condition. We estimate that 40 percent of 50- to 64-
year-olds (or about 25 million people in this age group) have
a deniable pre-existing condition and risk losing access to
affordable coverage. We strongly oppose any weakening of the
law's pre-existing condition protections which benefit
millions of Americans.
Medicaid and Long-Term Services and Supports
AARP opposes the provisions of the American Health Care Act
that create a per capita cap financing structure in the
Medicaid program. We are concerned that these provisions
could endanger the health, safety, and care of millions of
individuals who depend on the essential services provided
through Medicaid. CBO found that the bill would cut Medicaid
funding by $880 billion over 2017-2026. By 2026, CBO expects
Medicaid spending to be about 25 percent less than what it
projects under current law. Medicaid is a vital safety net
and intergenerational lifeline for millions of individuals,
including over 17.4 million low-income seniors and children
and adults with disabilities who rely on the program for
critical health care and long-term services and supports
(LTSS, i.e., assistance with daily activities such as eating,
bathing, dressing, managing medications, and transportation).
Older adults and people with disabilities now account for
over sixty percent of Medicaid spending, and cuts of this
magnitude will result in loss of benefits and services for
this vulnerable population.
Of these 17.4 million individuals: 6.9 million are ages 65
and older (which equals more than 1 in every 7 elderly
Medicare beneficiaries); 10.5 million are children and adults
living with disabilities; and about 10.8 million are so poor
or have a disability that they qualify for both Medicare and
Medicaid (dual eligibles). Dual eligibles account for almost
33 percent of Medicaid spending. While they comprise a
relatively small percentage of enrollees, they account for a
disproportionate share of total Medicare and Medicaid
spending.
Individuals with disabilities of all ages and older adults
rely on critical Medicaid services, including home and
community-based services (HCBS) for assistance with daily
activities such as eating, bathing, dressing, and home
modifications; nursing home care; and other benefits such as
hearing aids and eyeglasses. People with disabilities of all
ages also rely on Medicaid for access to comprehensive acute
health care services. For working adults, Medicaid can help
them continue to work; for children, it allows them to stay
with their families and receive the help they need at home or
in their community. Individuals may have low incomes, face
high medical costs, or have already spent through their
resources paying out-of-pocket for LTSS, and need these
critical services. For these individuals, Medicaid is a
program of last resort.
In providing a fixed amount of federal funding per person,
this approach to financing would likely result in
overwhelming cost shifts to states, state taxpayers, and
families unable to shoulder the costs of care without
sufficient federal support. This would result in cuts to
program eligibility, services, or both--ultimately harming
some of our nation's most vulnerable citizens. In terms of
seniors, we have serious concerns about setting caps at a
time when per-beneficiary spending for poor seniors is likely
to increase in future years. By 2026, when Boomers start to
turn age 80 and older, they will likely need much higher
levels of service--including HCBS and nursing home--moving
them into the highest cost group of all seniors. As this
group continues to age, their level of need will increase as
well as their overall costs. We are also concerned that caps
will not accurately reflect the cost of care for individuals
in each state, including for children and adults with
disabilities and seniors, especially those living with the
most severe disabling conditions. CBO estimates that Medicaid
spending on a per-enrollee basis would grow at a faster rate
than the consumer price index for medical care services (CPI-
M)--3.7 percent for CPI-M versus an average annual growth
rate of 4.4 percent for Medicaid over the 2017-2026 period.
Over time, the difference in the growth rate under the per
capita cap (CPI-M) and the actual cost of care would further
shift costs to states, which could result in even greater
potential harm to some of the most vulnerable individuals.
AARP is also opposed to the repeal of the six percent
enhanced federal Medicaid match for states that take up the
Community First Choice (CFC) Option. CFC provides states with
a financial incentive to offer HCBS to help older adults and
people with disabilities live in their homes and communities
where they want to be. About 90 percent of older adults want
to remain in their own homes and communities for as long as
possible. HCBS are also cost effective. On average, in
Medicaid, the cost of HCBS per person is one-third the cost
of institutional care. Taking away the enhanced match could
disrupt services for older adults and people with
disabilities in the states that are already providing
services under CFC and would result in a loss of about $12
billion for HCBS over ten years.
AARP also has concerns with the removal of the state option
in Medicaid to increase the home equity limit above the
federal minimum. This provision would take away flexibility
for states to adjust a Medicaid eligibility criterion based
on the specific circumstances of each state and its residents
beyond a federal minimum standard. AARP continues to support
critical consumer protections included in current law,
including guaranteed issue, prohibitions on preexisting
condition exclusions, bans on annual and lifetime coverage
limits and allowing families to keep children on their
policies until the age of 26. Also, AARP continues to support
restoring the 7.5 percent threshold for the medical expense
deduction which will directly help older Americans struggling
to pay for health care, particularly the high cost of nursing
homes and other long-term services and supports.
We look forward to working with you to ensure that we
maintain a strong health care system that ensures robust
insurance market protections, controls costs, improves
quality, and provides affordable coverage to all Americans.
Sincerely,
Nancy A. LeaMond,
Executive Vice President and
Chief Advocacy and Engagement Officer.
Mr. Speaker, the American Medical Association sent letters to Speaker Ryan and Minority Leader Pelosi saying that ``We are deeply concerned that the AHCA would result in millions of Americans losing their current health insurance coverage. Nothing in the'' so- called ``MacArthur amendment remedies the shortcomings of the underlying bill.''
And then they say that, basically, this addition that the Republicans added to the healthcare bill ``could effectively make coverage completely unaffordable for people with preexisting conditions.''
I include in the Record the letter from the American Medical Association.
American Medical Association,
Chicago, IL, April 27, 2017.
Hon. Paul Ryan,
Speaker, House of Representatives,
Washington, DC.
Hon. Nancy Pelosi,
Democratic Leader, House of Representatives,
Washington, DC.
Dear Speaker Ryan and Leader Pelosi: After reviewing the
MacArthur Amendment to H.R. 1628, the American Health Care
Act (AHCA), the American Medical Association (AMA) remains
opposed to passage of this legislation. As we have previously
stated, we are deeply concerned that the AHCA would result in
millions of Americans losing their current health insurance
coverage. Nothing in the MacArthur amendment remedies the
shortcomings of the underlying bill. The amendment does not
offer a clear long-term framework for stabilizing and
strengthening the individual health insurance market to
ensure that low and moderate income patients are able to
secure affordable and adequate coverage, nor does it ensure
that Medicaid and other critical safety net programs are
maintained and adequately funded.
The MacArthur Amendment would allow states to apply for
waivers from critical consumer protections provided in the
Affordable Care Act (ACA), including the age rating ratio of
3 to 1, the requirements that health insurers must cover
certain essential health benefits, and the ban on health
status underwriting. The current ban on health status
underwriting protects individuals from being discriminated
against by virtue of their medical conditions. Prior to the
passage of the ACA, such individuals were routinely denied
coverage and/or priced out of affordable coverage. We are
particularly concerned about allowing states to waive this
requirement because it will likely lead to patients losing
their coverage. Although the MacArthur Amendment states that
the ban on preexisting conditions remains intact, this
assurance may be illusory as health status underwriting could
effectively make coverage completely unaffordable to people
with preexisting conditions. There is also no certainty that
the requirement for states to have some kind of reinsurance
or high-risk pool mechanism to help such individuals will be
sufficient to provide for affordable health insurance or
prevent discrimination against individuals with certain high-
cost medical conditions.
We continue to strongly urge Congress to engage in a
bipartisan, bicameral dialogue with stakeholders to work on
policies that enhance coverage, choice, and affordability.
Sincerely,
James L. Madara, MD.
Mr. Speaker, I find all this particularly puzzling because my friends have said over and over and over and over again that they agree with Democrats when it comes to protecting people with preexisting conditions. They said that they do not want insurance companies to have the ability to discriminate against people with preexisting conditions. And yet what they have done is they have created a repeal-and-replacement bill that does just that and then goes after essential benefits.
Again, we have been talking about essential benefits over and over and over again. And again, I want to remind my colleagues what the word ``essential'' means. Go to the dictionary.
Look up the word ``essential.'' It says, absolutely necessary, extremely important. That is the definition of essential. And so when we talk about essential health benefits, that is what we are talking about.
I have one additional speaker. I was going to close, but I would ask indulgence.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. Jackson Lee).
I yield the gentlewoman from Texas an additional 1 minute.
Mr. Speaker, I yield myself such time as I may consume.
I thank the gentlewoman for her remarks. I thank the chairman of the Rules Committee for his indulgence.
I would just close by saying I think it is sad that we are here at the last minute trying to kick the can down the road to keep the government running again for 1 additional week. This could have been avoided and, again, it could have been avoided if, instead of trying to take away people's health insurance, instead of trying to take away people's essential health benefits, instead of trying to cut Medicaid by $800 billion and taking that money and giving a tax break of close to $1 trillion to the richest people in the country, that we actually focused on our job, which is keeping this government running.
But my colleagues on the Republican side are in charge. We are where we are. We have to keep the government running.
Having said all of that, I yield back the balance of my time.