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January 2018

Gallup Poll: Uninsured Rate Rose in Trump’s First Year

After a new Gallup poll showed that America’s uninsured rate jumped during Trump’s first year in office for the first time in a decade, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“This is what sabotage looks like. Today, Gallup confirmed that over 3 million Americans lost their insurance in 2017, becoming the first casualties of President Trump and Congressional Republicans’ war on health care. Today’s numbers also confirm that it’s exactly those Americans who the Trump administration targeted who are losing coverage: working families earning less than $36,000 a year, young adults, African-Americans, and Hispanics. On behalf of the 3 million who have already lost their coverage, and will now pay the price with their health — and the millions more whose insurance is under attack, we join the American people in saying: enough is enough. President Trump and his allies in Congress must stop their partisan war on health care before they take coverage from millions more and and drive up prices and weaken protections for everyone else.”

Newest Target of GOP Health Care Sabotage: Employer-Based Coverage

In response to the New York Times revealing  that the GOP’s next health care sabotage scheme would remove the requirement that ensures employers with over 50 employees provide health care to their employees, Protect Our Care Campaign Director Brad Woodhouse issued the following statement:

“Most Americans get their health insurance through their employer but Republicans want to let employers off the hook to provide it. The latest scheme from Congressional Republicans is to allow employers to no longer provide insurance and force people to deal with the consequences on their own.

“While they wait to force through their full health care repeal legislation, they continue to sabotage the system and employer-based coverage is the newest front. After they gave billions in tax breaks to wealthy corporations, maybe we shouldn’t be surprised that they want to let those same corporations cancel their health care policies for employees.

“Enough is enough is enough. It’s time for Republicans to stop their war on America’s health care.”

Protect Our Care Statement On Approval Of Kentucky Medicaid Waiver

In response to the news that the Trump Administration granted the approval of Kentucky’s waiver to implement work requirements for Medicaid recipients, Protect Our Care Campaign Director Brad Woodhouse issued the following statement:

“Today’s move from Republicans marks not just a shift in policy, but a shift in the fundamental decency of the United States. Medicaid has long been a lifeline for millions of hard-working Americans – our parents and grandparents, siblings and children. After more than fifty years and nine bipartisan administrations, it is Donald Trump who will cut Americans off from their health care.

“Despite the rhetoric pushed by this Administration and Republicans in Congress, the simple truth is that the majority of those covered by Medicaid who can work are working, largely in low-wage jobs or industries that don’t provide health care, and those who are not working overwhelmingly have chronic health conditions or are taking care of a sick family member. In Kentucky, where nearly 50 percent of all births are covered under Medicaid and nearly 10,000 veterans received the health care they deserve through Medicaid expansion, 20,000 people stand to lose coverage. This decision harms the most vulnerable among us, and abandons the next generation born into circumstances beyond their power.

“Changing Medicaid will do nothing to help Americans find jobs. It will merely take away their health care. It’s a cruel, short-sighted policy, and every Republican who goes along with it should be ashamed.”

“Today’s Announcement Isn’t About Work. It Is About Taking Away Health Insurance From Low-Income People”: Responses to the Trump Administration’s Medicaid Announcement

Today, the Trump Administration announced changes to Medicaid, the nation’s largest health insurance program. Issued to mandate work requirements to those receiving Medicaid, the proposed changes jeopardize health care for millions of Americans – nearly all of whom are already working. Responses to this announcement have focused on the amount of unnecessary suffering this could bring about, as well as the vast mistruths the Trump Administration is promoting. Don’t believe us?  Take a look for yourself…

Politico: “Independent studies have shown that most Medicaid enrollees who are eligible to work already do so.” [Politico, 1/11]

Washington Post: “Most health policy experts, including a few noted conservatives, have regarded the government insurance enabling millions of people to afford medical care as a right that should not hinge on individuals’ compliance with other rules.” [Washington Post, 1/11]

Vox: “Republicans argue that requiring work for Medicaid eligibility will lead to better health outcomes, because employment can be linked to improved health and help move people off Medicaid as they make more money. But many Medicaid recipients are already working. If they are not, then they are likely elderly, disabled, retired, sick, or caring for a loved one. These new bureaucratic hurdles could impede some Americans’ ability to access health insurance and the care they need.” [Vox, 1/11]

Los Angeles Times: “Critics of the Trump administration’s approach note that a growing body of evidence shows that Medicaid health coverage is helping many Americans improve their health and their finances, not holding them back, as Verma and other have suggested… There is little evidence that many working-age Medicaid enrollees are choosing the government coverage instead of seeking work.” [Los Angeles Times, 1/11]

CNN: “The Trump administration is about to start letting states require many Medicaid recipients to work for their benefits. But millions of Americans in the health care safety net program already have jobs. Some 60% of working age, non-disabled Medicaid enrollees are working, according to a new report from the Kaiser Family Foundation. That’s about 15 million people. Plus, nearly eight in 10 recipients live in families with at least one worker.” [CNN, 1/11]

Associated Press: “Most who are not working report reasons such as illness, caring for a family member or going to school. Some Medicaid recipients say the coverage has enabled them to get healthy enough to return to work.” [NBC News, 1/11]

Washington Examiner: “A Kaiser Family Foundation brief about work requirements in other programs, such as SNAP and TANF, raised questions about their effectiveness in getting people employed and said states spend a large amount of time and money making sure the requirements are followed.” [Washington Examiner, 1/11]

USA Today: “Health groups and advocates for the poor — including the National Center for Law and Economic Justice and the American Lung Association — dispute Verma’s contention that the Centers Medicare and Medicaid Service has the authority to grant such requests. Courts have said states can’t add additional requirements for Medicaid eligibility that are not in law, the coalition wrote. Some bills offered in Congress address such changes, but haven’t passed yet. ‘Most people on Medicaid who can work, do so,’ the coalition wrote, ‘and for people who face major obstacles to employment, harsh requirements won’t help them overcome them.’” [USA Today, 1/11]

Harold Pollock, University of Chicago: “Medicaid work requirements may hit Trump country hardest. They could hit underemployed early-retirees who now find themselves reliant on Medicaid.. They could hit surprising numbers of people with disabilities — including addiction to opioids — who are covered under the ACA Medicaid expansion but can’t fill the requirements. They could hit hospitals in low-income rural areas that provide services to people who have lost Medicaid and can’t pay.” [Washington Post, 1/11]

Jeff Grogger, University of Chicago: “Medicaid, unlike cash welfare payments, isn’t a disincentive to work, because it doesn’t provide people with funds they’d need to pay rent or buy food, said Jeff Grogger, an urban policy professor at the University of Chicago. He said it’s not clear what problem a Medicaid work requirement would solve, and that there are better ways to help people find jobs or reduce the number of people receiving Medicaid.”

Jeff Grogger, University of Chicago: “It’s not like Medicaid is providing some kind of alternative lifestyle that’s attractive and keeps people out of the workforce. If we had fewer sick people and fewer poor people, that’d lower the Medicaid rolls. Thinking in those terms is more productive.” [Bloomberg, 1/11]

Sara Rosenbaum, George Washington University: “‘It’s like the Wild West. Who knows what will come in the door?’ Sara Rosenbaum, a George Washington University professor who has followed Medicaid policy for decades, said. ‘Everything is couched as ‘you could,’ ‘you might,’ ‘you should think about.’ It’s like winking and nodding throughout the whole thing. They are not saying, ‘These are the limits on what we’ll approve.’” [Vox, 1/11]

Sara Rosenbaum, George Washington University: “There is a breathtaking lack of guardrails. Basically almost anything goes.. There’s really nobody who’s exempt.” [Vox, 1/11]

Elliot Fishman, Former CMS Administrator: “You’re going to lose not just the people who don’t meet the requirement but also those who can’t get through the new bureaucratic process.. Our experience over decades of research is that any time you require new documentation, you lose a lot of people who in principle shouldn’t be losing eligibility.” [Talking Points Memo, 1/11]

Elliot Fishman, Former CMS Administrator: “The requirement for Medicaid waivers is that they promote the objectives of the Medicaid program, and not just in the Obama administration, but in every previous administration, that was always understood to mean expanding coverage and strengthening the delivery of medical services. It has never been used to just cut back on coverage, which this is an effort to do.” [Talking Points Memo, 1/11]

Leonard Cuello, National Health Law Program National Policy Director: “Cuello said the argument that work promotes health is ‘totally contorted . . . It’s a little like saying that rain causes clouds. It’s more that people [with Medicaid] get care, which helps them be healthy and makes them able to work.’” [Washington Post, 1/11]

Mary Beth Musucemi, Kaiser Foundation Medicaid and the Uninsured Program Associated Director: This “will penalize individuals by having them lose health coverage, rather than incentivize them, as a voluntary program with adequately funded supportive services necessary to overcome barriers would.” [Washington Post, 1/11]

Mary Beth Musucemi, Kaiser Foundation Medicaid and the Uninsured Program Associated Director: “Conditioning Medicaid eligibility and coverage on work is a fundamental change to the 50 plus year history of the Medicaid program… There is a real risk of eligible people losing coverage due to their inability to navigate this process or miscommunication or other breakdowns in the administrative process.” [The Hill, 1/11]

Joan Alker, Georgetown Center for Children and Families Executive Director: The administration “has the ‘causality backwards’ and ‘you’re more likely to be able to work’ if you have health insurance such as Medicaid in the first place.” [The Hill, 1/11]

Matt Fiedler, Brookings Institution: “Documenting compliance will often not be trivial, and even small hassle costs can discourage people from signing up for insurance coverage… Higher hassle costs will likely cause meaningful reductions in Medicaid coverage even among people who are working.”  [Vox, 1/11]

Eliot Fishman, Families USA Senior Health Policy Director: “Unconscionable and illegal… Today’s announcement isn’t about work. It is about taking away health insurance from low-income people.” [Washington Post, 1/11]

Judy Solomon, Center on Budget and Policy Priorities Vice President for Health Policy:  “It is a very major change in Medicaid that for the first time would allow people to be cut off for not meeting a work requirement, regardless of the hardship they may suffer… There’s never been a work requirement in Medicaid, it’s only been in recent years that states have raised the possibility of having one. Medicaid is a health program that is supposed to serve people who don’t otherwise have coverage.” [NBC News, 1/11]

Judy Solomon, Center on Budget and Policy Priorities Vice President for Health Policy: “Don’t be fooled by the new [CMS] guidance saying will protect people with disabilities. It won’t. While people who get Medicaid because they meet strict Social Security disability criteria are exempt, there are lots of people who are ill or have a disability who get Medicaid. These people including people with cancer, mental illness and substance use disorders, will be subject to the work requirement and have to prove they are exempt with a doctor’s letter or other proof. Many won’t know to do that and some won’t be able to get the paperwork… The consequences will be harsh for many people. Losing critical care they need to stay healthy. This new policy won’t improve health outcomes but worsen them for many people and make it harder for them to work or stay employed.” [Twitter, 1/11]

Suzanne Wikle, Center for Law and Social Policy: “Access to Medicaid makes it easier for people to look for work and obtain employment. A so-called ‘work requirement’ does not support work, but instead puts a critical support for work at risk.” [National Public Radio, 1/11]

Jane Perkins, National Health Law Center Legal Director: “We know the upshot is people are going to be cut off… We are going to sweep in people who are working or trying to get work because they haven’t filled out the necessary paperwork. And cutting off people from Medicaid is certainly not going to improve their health.” [Los Angeles Times, 1/11]

Matt Salo, National Association of Medicaid Directors Executive Director: “This is going to go to court the minute the first approval comes out.” [Washington Post, 1/11]

Kicking You While You’re Down: 5 Facts You Need to Know About Medicaid & Why the Trump Administration’s New Proposal Would Hurt People

 

The Trump administration announced that it would allow states to deny Medicaid coverage to some low-income adults if they are not working or have a work-related activity, a move that could affect as many as 22 million people, with the stated goal that it would incentivize people to find a job. The facts speak otherwise. The truth is: the vast majority of people with Medicaid coverage who can work, are working. This policy ignores the reality that many who want to work can’t find a job and kicks people while they are down: targeting people with chronic health conditions, families with a sick child or a parent who needs care, and in particular women. If the goal here is to help people find a job, how does taking away their health care do that? It doesn’t. It only makes it harder. Here are five facts you should know about Medicaid and why the Trump administration’s policy would hurt people.

FACT –  The vast majority of people with Medicaid coverage who can work, are working.

  • 60 percent of nondisabled people with health coverage through Medicaid have a job and are working, including 42 percent working full-time.
  • 51 percent of working adult Medicaid enrollees have full-time jobs year-round, but their salaries are still low enough to qualify for Medicaid coverage, or have Medicaid because their employers do not offer insurance.  
  • Nearly 80 percent of nondisabled people with Medicaid coverage live in a family where at least one person is working, including 64 percent working full-time. The other adult family member may not be working because they have caregiving or other responsibilities at home.
  • A state by state breakdown can be found HERE

FACT – About half of working adults on Medicaid work for a small business and industries that typically do not provide health coverage, like farming.

  • Nearly half of adults who work and have Medicaid coverage work at businesses with fewer than 100 employees, including 42 percent in businesses with fewer than 50 employees.
  • 40 percent of adults who work with Medicaid coverage work in the the agriculture and service industries.

FACT – The Trump administration’s policy would hurt people with chronic health conditions or taking care of a family member.

  • More than one-third (36 percent) of adults with Medicaid are not working because they are ill or disabled but do not qualify for Supplemental Security Income (SSI).
  • 30 percent of adults on Medicaid without a job report they are taking care of a sick loved one or parent. 15 percent were in school; 9 percent were retired; and only 6 percent could not find work.

FACT – The Trump administration’s work requirement policy would hurt women, particularly women of color.

  • Almost two-thirds, or 62 percent, of those who would lose their Medicaid coverage as a result of work requirements are women, and disproportionately women of color.
  • One reason is women are more likely to be the caregivers for other sick family members, including children, or their parents. And women are more likely to be in jobs that do not provide health coverage.

FACT – The Trump administration’s policy may make it harder for Medicaid enrollees to find a job.

Research from Ohio and Michigan has shown that expanding Medicaid coverage makes it easier to find a job and keep a job. This policy does nothing to help people find work, and it may actually have the opposite effect.

The Plot Against Americans: Bombshell Report Reveals Trump Admin’s Master Strategy to Rip Apart Our Health Care System

WASHINGTON, DC – After Politico released a late-night bombshell report revealing that the Trump Administration left a paper trail of their plans to sabotage health care, Protect Our Care Campaign Chairman Leslie Dach released the following statement:

“President Trump left behind a smoking gun in this newly revealed document, and now Americans can see beyond a shadow of a doubt that the Republican plot to sabotage our care started on Day One of this Administration. This newly revealed document confirms what we knew all along – Republicans never had any plan to improve health care for Americans; they always intended to rip apart affordable coverage and vital insurance protections root and branch. After today, President Trump and Congressional Republicans can no longer deny the truth: from the outset, they were hell-bent on waging a spiteful war against Americans’ health care.”

Azar Fails Confirmation Questioning, Refuses to Protect Our Care

Following Alex Azar’s refusal to commit to protecting Americans’ care at this morning’s Senate Finance Committee hearing, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“Alex Azar failed the American people at his confirmation hearing today by refusing to signal an end to the Trump Administration’s sabotage and to promise that he would protect our care. Azar showed that we can’t trust him to defend Americans’ coverage by endorsing Republicans’ wildly unpopular proposal to cut Medicaid through block grants. And as a former Big Pharma lobbyist, Azar failed to offer any assurances he would address spiking drug costs with his out-of-touch claim that costs will always go up. If confirmed as Secretary, Azar would be empowered to accelerate the Republican war on health care. Because of Azar’s failure at today’s hearing, Senators must reject his nomination.”

Protect Our Care Memo to Senators: Azar Must Answer for Trump Admin Sabotage

Ahead of tomorrow’s Senate Finance confirmation hearing for HHS nominee Alex Azar, Protect Our Care Campaign Director Brad Woodhouse sent a memo to Finance Committee Senators outlining questions Americans deserve answered about the Trump Administration’s war on our health care, and released the following statement:

“During tomorrow’s confirmation hearing, Americans deserve to find out whether Alex Azar would keep pushing the Trump Administration’s anti-health care agenda if confirmed,” said Woodhouse. “Given Azar’s anti-consumer track record as a Big Pharma lobbyist, he needs to assure the millions of people who have already signed up for 2018 HealthCare.Gov plans that, as Secretary, he would end the Trump Administration’s ongoing sabotage efforts and start giving insurers the stability they need in order to set affordable rates. In addition, Americans deserve assurances from Azar that he would end Republicans’ attempts to weaken Medicaid and deny women access to copay-free birth control. If Azar fails to signal an end to the Trump Administration’s sabotage or refuses to promise that he will faithfully administer the law of the land, the Affordable Care Act, then Senators should reject his nomination.”

New Protect Our Care Ad Urges Members of Congress to Oppose HHS Nominee Alex Azar, Stop the GOP’s War On Health Care

FOR IMMEDIATE RELEASE
January 8, 2018

Ad: “Alex Azar is ready to lead the Republican war on health care into its second year… It’s time for Congressional Republicans to stop their war against your health care. Vote no on Alex Azar.”

Washington, D.C. – Protect Our Care today announced a new digital ad urging Members of the Senate to reject Donald Trump’s nominee to head the Health and Human Services Department, Alex Azar, a former pharmaceutical executive who has agreed to lead the GOP’s war on health care into a second year. The ad comes in advance of Tuesday’s Senate Finance Hearing about Azar.

Azar has agreed to head up the GOP’s war on health care, which has included: (1) a never-ending quest to repeal health care despite the fact that doing so raises premiums by double digits and removes protections for millions of Americans; and (2) extensive administrative action to sabotage the health care law, including cutting the open enrollment sign-up period in half and slashing its advertising budget by 90 percent; stopping cost-sharing reduction payments which raise premiums; and most recently proposing a rule to offer association health plans, junk insurance which guts protections for those with pre-existing conditions.

Watch the ad urging opposition to Mr. Azar here.

“The GOP war on health care is already forcing higher costs and ripping away coverage, and the Trump Administration’s first leader had to resign for abusing taxpayer resources,” said Protect Our Care Campaign Director Brad Woodhouse. “Now they’ve recruited a new general who will embrace the twin weapons of repeal and sabotage, no matter how much higher they force our costs or how many people get hurt.”

Mr. Azar opposes the health care law that covers millions of people, going so far as to say it is ‘circling the drain,’ echoing the Administration’s blatant lie that the law is not working. Despite the GOP’s years-long efforts, the Affordable Care Act is more popular than ever, and nearly 9 million Americans signed up for coverage during the open enrollment period. Alternatively, the GOP’s approach to health care has led to historically-unpopular approval ratings for Congressional Republicans and President Trump and drove widespread electoral losses in November and in the Alabama Senate race.

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“By The Time They Discover They’ve Been Sold A Fraudulent Product, The Promoter Will Be On His Way To The Caribbean”: Responses to the Trump Administration’s Proposed Junk Insurance Rule

Yesterday, the Trump Administration announced a proposed rule to expand association health plans, which will gut protections and raise costs for people with pre-existing conditions and further destabilize the marketplace. The coverage of these plans has focused on what they are: junk insurance plans. Don’t believe us? Take a look for yourself…

Chris Hansen, American Cancer Society Cancer Action Network: “The Rule Proposed Today Will Almost Certainly Result In More People Facing Financial Distress When An Unexpected Health Crisis Happens.” “Consumer groups, state officials and Blue Cross and Blue Shield plans have strenuously opposed similar ideas for years. Association health plans, they say, will tend to attract employers with younger, healthier workers, leaving behind sicker people in more comprehensive, more expensive plans that fully comply with the Affordable Care Act. That could drive up premiums, which already have risen steadily as Republicans have taken aim at President Barack Obama’s signature domestic achievement. ‘Those with serious health conditions like cancer would be left paying ever-increasing premiums for comprehensive coverage,’ said Chris Hansen, the president of the American Cancer Society Cancer Action Network. ‘The rule proposed today will almost certainly result in more people facing financial distress when an unexpected health crisis happens.’” [New York Times, 1/4]

Marc I. Machiz, Former Labor Department Investigator: “Any Idiot With A Word Processor Can Create An Association In 10 Minutes…By The Time They Discover They’ve Been Sold A Fraudulent Product, The Promoter Will Be On His Way To The Caribbean.” “Similar health plans have a history of fraud and abuse that have left employers and employees with hundreds of millions of dollars in unpaid medical bills. Marc I. Machiz, who investigated insurance fraud as a Labor Department lawyer for more than 20 years, said the proposed rules were an invitation to more scams. ‘Any idiot with a word processor can create an association in 10 minutes and market it to small employers and individuals who certify that they are self-employed,” Mr. Machiz said. ‘The employers and individuals will pay premiums. By the time they discover they’ve been sold a fraudulent product, the promoter will be on his way to the Caribbean.’” [New York Times, 1/4]

Health Affairs: “The Proposed Rule Itself Acknowledges That Some AHPs Have ‘Failed To Pay Promised Benefits To Sick And Injured Workers While Diverting, To The Pockets Of Fraudsters, Employer And Employee Contributions.” “The proposed rule itself acknowledges that some AHPs have ‘failed to pay promised health benefits to sick and injured workers while diverting, to the pockets of fraudsters, employer and employee contributions from their intended purpose of funding benefits’ and that Congress enacted reforms to address AHP abuse in the past. Yet, by broadening the availability of AHPs and relaxing commonality of interest standards, the proposed rule likely opens the door to additional fraudulent AHP behavior and the insolvency and unpaid claims that accompany it. The rule acknowledges that the Department would need to commit additional resources to AHP oversight if the proposal is finalized to address AHP mismanagement and abuse.” [Health Affairs, 1/5]

Los Angeles Times: CBO: Previous Proposals “Would Have Made Coverage Unaffordable For Many Consumers With Preexisting Medical Conditions.” “Many patient groups and consumer advocates — who are already alarmed by Trump administration efforts to undermine the 2010 health law — fear that less comprehensive health plans will leave Americans without vital protections… By allowing healthier Americans to buy plans that don’t cover expensive medications or other medical benefits, these plans also risk driving up costs for sick patients who need the more extensive coverage. For example, proposals last year by congressional Republicans to allow health plans to offer slimmed down benefits would have made coverage unaffordable for many consumers with preexisting medical conditions, according to analyses by the nonpartisan Congressional Budget Office.” [Los Angeles Times, 1/4]

The Hill: Association Plans “Would Likely Drive Up Premiums” And “Unlike Obamacare Plans, AHPs Could Charge Higher Premiums Based On Age And Gender.” “Critics say AHPs could still find other ways to cherry-pick only the young, healthy people. ‘You can be sure they are going to design benefit packages to attract healthier people,” and “siphon them away from the individual market,’ said Sabrina Corlette, a professor at the Georgetown University Center on Health Insurance Reforms. Leaving the less healthy individuals in the individual and small group markets would likely drive up the premiums. AHPs could also decline to cover prescription drugs, which could discourage sick people from enrolling and, unlike ObamaCare plans, AHPs could charge higher premiums based on age and gender.” [The Hill, 1/4]

America’s Health Insurance Plans: “We Are Concerned That This Could Create Or Expand Alternative, Parallel Markets For Health Coverage, Which Would Lead To Higher Premiums For Consumers, Particularly Those With Pre-Existing Conditions.” “Supporters of the ACA have said that relaxing the rules on associations could destabilize the individual insurance market, where roughly 17 million people buy their own insurance either on or off the ACA exchanges. And they say enabling individuals to join associations would provide an off-ramp from the exchanges that would drain away the younger, healthier people who are needed to keep premiums in check. ‘We are concerned that this could create or expand alternative, parallel markets for health coverage, which would lead to higher premiums for consumers, particularly those with pre-existing conditions,’ said a Dec. 14 letter from groups including America’s Health Insurance Plans, a top insurers’ trade association.” [Wall Street Journal, 1/4]

Washington Post:”The Rules Would Allow Such Plans To Be Reclassified So They No Longer Would Have To Include A Set Of 10 Essential Health Benefits – Including Maternity Care, Prescription Drugs And Mental Health Services.” “Specifically, the rules would allow such health plans to be reclassified so they no longer would have to include a set of 10 essential health benefits — including maternity care, prescription drugs and mental health services — that the ACA requires of insurance sold to individuals and small companies… Unlike [marketplace plans], the association plans could charge customers different prices depending on their age, gender and location. ‘The potential is that it creates an uneven playing field,’ said Kevin Lucia, a research professor at Georgetown University’s Center on Health Insurance Reforms, who worked on early stages of the 2010 health-care law within the Obama administration.” [Washington Post, 1/4]

Politico: State Insurance Advocates “Have Warned That Lax Rules Could Open The Door To A New Wave Of Poorly Regulated Health Plans That Exclude Coverage Of Key Services. However, state insurance regulators and Obamacare advocates have warned that lax rules could open the door to a new wave of poorly regulated health plans that exclude coverage of key services required by the Affordable Care Act, such as hospitalizations and prescription drugs. ‘The Trump administration has declared open season for fraudsters selling junk insurance while those with pre-existing conditions will find health care further and further out of reach,’ said Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee.” [Politico, 1/4]

USA Today: As Proposed, “These Plans Are Governed By State Insurance Rules So Might Not Have As Sweeping Coverage Of What the ACA Considered ‘Essential Health Benefits.’” The regulations would allow the expansion of so-called ‘association health plans,’ which are groups of small businesses and possibly individuals that band together to purchase insurance. These plans are governed by state insurance rules so might not have as sweeping coverage of what the ACA considered ‘essential health benefits,’ such as maternity care, prescription drug coverage or hospitalization. Some states actually require more comprehensive benefits though… Consumers could buy these plans across state lines, although whether doctor and hospital networks would be sufficient remains a question.” [USA Today, 1/4]

Associated Press: Insurance Industry Groups Are Skeptical Of Trump’s Idea, Saying It Could Undermine The Current State Markets.” “The new rule would make it easier for groups, or associations, to sponsor health plans that don’t have to meet all consumer protection and benefit requirements of the Obama law… Insurance industry groups are skeptical of Trump’s idea, saying it could undermine the current state markets. Patient groups are concerned about losing protections. Some state regulators object to federal interference.” [AP, 1/4]

Reuters: “The Rule Could Destabilize Several States’ Individual Insurance Markets.” “Proponents of Obamacare say the rule would undermine the individual insurance market created under the law by allowing young and healthy people to purchase cheaper insurance, leaving the sickest and most expensive patients in the Obamacare markets, driving up costs. Hospitals, insurers and medical groups criticized the rule in December and said it would make health insurance unaffordable for people with pre-existing conditions. The rule could destabilize several states’ individual insurance markets because healthier people could access cheaper insurance, said Evercore ISI analyst Michael Newshel, adding that it is still unclear whether significant numbers of people will opt for the slimmer plans.” [Reuters, 1/5]