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Lamar Alexander

Court Ruling Helps Lamar Alexander Rip Away Protections for People with Pre-Existing Conditions

Decision From Federal Judge Means:

Medicaid Expansion is Gone

Protections for Pre-Existing Conditions are Gone

Hundreds of Thousands of Tennesseans Will Lose Health Care

And Lamar Alexander OWNS IT

Washington, D.C. –  On Friday night, conservative U.S. District Judge Reed O’Connor issued his ruling in Texas, et. al. vs. United States, et. al., siding with Republican attorneys general, governors, the Trump Administration, and Senator Lamar Alexander  to overturn the entire Affordable Care Act (ACA). Whether it’s repealing the individual mandate to pay for tax cuts or ramming through partisan repeal legislation, repeal cheerleader Lamar Alexander has done nothing but support the GOP’s efforts to strip coverage from hundreds of thousands of Tennesseans. Brad Woodhouse, executive director of Protect Our Care issued the following statement:

“Like two sides of the same coin, Lamar Alexander and the Trump Administration have worked relentlessly to undermine the Affordable Care Act. Today, they are one step closer to ripping health care away from millions of Tennesseans with pre-existing conditions like cancer, diabetes, or asthma.  If this ruling isn’t overturned, Lamar Alexander will roll back the clock and take Tennesseans back to the days where insurance companies had the power to once again deny, drop, or charge more for coverage. They will once again have the power to impose annual or lifetime limits and charge women and seniors more based on their age and gender. Make no mistake, these actions will hurt hundreds of thousands of Tennesseans.”

BACKGROUND:

Due to Judge O’Connor’s ruling yesterday, Republicans are one step closer to repealing the Affordable Care Act and eliminating key protections, unleashing — as the Trump Administration itself admitted in his court — “chaos” in our entire health care system. Under this ruling:

  • Marketplace tax credits and coverage for 10 million people: GONE.
  • Medicaid expansion currently covering 15 million people: GONE.
  • Protections for more than 130 million people with pre-existing conditions when they buy coverage on their own: GONE.
  • Allowing children to stay on their parents’ insurance until age 26: GONE.
  • Free annual wellness exams: GONE.
  • Ban on annual and lifetime limits: GONE.
  • Ban on insurance discrimination against women: GONE.
  • Contraception with no out-of-pocket costs: GONE.
  • Limit on out-of-pocket costs: GONE.
  • Requirement that insurance companies cover essential benefits like prescription drugs, maternity care, and hospitalization: GONE.
  • Improvements to Medicare, including reduced costs for prescription drugs: GONE.
  • Closed Medicare prescription drug donut hole: GONE.
  • Rules to hold insurance companies accountable: GONE.
  • Small business tax credits: GONE.

What’s at stake for Tennessee:

  • The coverage that 266,000 Tennesseans gained through the ACA by 2015.
  • Protections for 2,718,800 Tennesseans who have a pre-existing health condition.
  • The health care of roughly 47,000 young adults in Tennessee who have coverage because they can stay on their parents coverage until age 26.
  • The nearly 2,745,436 Tennesseans, most of whom have employer coverage, who can access free preventive care at no cost.
  • The 3,369,000 Tennesseans with employer coverage who no longer have to worry about lifetime or annual limits.
  • Seniors’ drug savings — 108,136 Tennessee seniors are saving $111.8 million on drugs in 2017, an average of $1,034 per beneficiary.

Because Judge O’Connor Sided With Republicans, 17.1 Million People Would Lose Their Coverage

Because Judge O’Connor Sided With Republicans, Insurance Companies Could Be Put Back In Charge, Ending Protections For The 130 Million People With A Pre-Existing Condition

  • According to a recent analysis by the Center for American Progress, roughly half of nonelderly Americans, or as many as 130 million people, have a pre-existing condition. This includes:
    • 44 million people who have high blood pressure
    • 45 million people who have behavioral health disorders
    • 44 million people who have high cholesterol
    • 34 million people who have asthma and chronic lung disease
    • 34 million people who have osteoarthritis and other joint disorders
  • 17 million children. One in four children, or roughly 17 million, have a pre-existing condition This includes 355,200 Tennessee children.
  • 68 million women. More than half of women and girls nationally have a pre-existing condition.
  • 30 million people aged 55-64. 84 percent of older adults, 30.5 million Americans between age 55 and 64, have a pre-existing condition. This includes 630,100 in Tennessee
  • 2,718,800 Tennesseans have a pre-existing condition.

Because Judge O’Connor Sided With Republicans, Insurance Companies Could Have The Power To Deny Or Drop Coverage Because Of A Pre-Existing Condition

Before the Affordable Care Act, insurance companies routinely denied people coverage because of a pre-existing condition or canceled coverage when a person got sick. If Judge O’Connor rules in favor of Republicans, insurance companies will be able to do this again.

  • A 2010 congressional report found that the top four health insurance companies denied coverage to one in seven consumers on the individual market over a three year period.
  • A 2009 congressional report found that the of the largest insurance companies had retroactively canceled coverage for 20,000 people over the previous five year period
Conditions That Could Cost You Your Care:

  • AIDS/HIV
  • Alcohol/drug Abuse
  • Cerebral Palsy
  • Cancer
  • Heart Disease
  • Diabetes
  • Epilepsy
  • Kidney Disease
  • Severe Epilepsy
  • Sleep Apnea
  • Pregnancy
  • Muscular Dystrophy
  • Depression
  • Eating Disorders
  • Bipolar Disorder
Jobs You Could Be Denied Coverage Because Of:

  • Active military personnel
  • Air traffic controller
  • Body guard
  • Pilot
  • Meat packers
  • Taxi cab drivers
  • Steel metal workers
  • Law enforcement
  • Oil and gas exploration
  • Scuba divers
Medications That You Could Be Denied Health Care For Taking:

  • Anti-arthritic medications
  • Anti-diabetic medications (including insulin)
  • Anti-cancer medications
  • Anti-coagulant and anti-thrombotic medications
  • Medications used to treat autism
  • Anti-psychotics
  • Medications for HIV/AIDS
  • Growth hormone
  • Medication used to treat arthritis, anemia, and narcolepsy
  • Fertility Medication

Because Judge O’Connor Sided With Republicans, Insurance Companies Could Have The Power To Charge You More

  • More than 100 Million People With A Pre-Existing Condition Could Be Forced to Pay More. An analysis by Avalere finds that “102 million individuals, not enrolled in major public programs like Medicaid or Medicare, have a pre-existing medical condition and could therefore face higher premiums or significant out-of-pocket costs” thanks to the Republican lawsuit to repeal the Affordable Care Act.
  • Insurance Companies Could Charge Premium Surcharges in the Six Figures. If Judge O’Connor sides with Republican lawmakers, insurance companies would be able to charge people more because of a pre-existing condition. The health repeal bill the House passed in 2017 had a similar provision, and an analysis by the Center for American Progress found that insurers could charge up to $4,270 more for asthma, $17,060 more for pregnancy, $26,180 more for rheumatoid arthritis and $140,510 more for metastatic cancer.
  • Women Could Be Charged More Than Men for the Same Coverage. Prior to the ACA, women were often charged premiums on the nongroup market of up to 50 percent higher than they charged men for the same coverage.
  • People Over the Age of 50 Could Face a $4,000 “Age Tax,” Including $5,404 in Tennessee. If Judge O’Connor sides with Republican lawmakers, insurance companies would be able to charge people over 50 more than younger people. The Affordable Care Act limited the amount older people could be charged to three times more than younger people. If insurers were to charge five times more, as was proposed in the Republican repeal bills, that would add an average “age tax” of $4,124 for a 60-year-old in the individual market, including $5,404 in Tennessee, according to the AARP.
  • Seniors Would Have to Pay More for Prescription Drugs. If Judge O’Connor sides with Republican lawmakers, seniors would have to pay more for prescription drugs because the Medicare “donut” hole got reopened. From 2010 to 2016, “More than 11.8 million Medicare beneficiaries have received discounts over $26.8 billion on prescription drugs – an average of $2,272 per beneficiary,” according to a January 2017 CMS report. In Tennessee, 108,136 seniors saved $111.8 million on drugs in 2017, an average of $1,034 per beneficiary. .

Because Judge O’Connor Sided With Republicans, Insurance Companies Could Have the Power to Limit the Care You Get, Even If You Have Insurance Through Your Employer

  • Insurance Companies Do Not Have to Provide the Coverage You Need. The Affordable Care Act made comprehensive coverage more available by requiring insurance companies to include “essential health benefits” in their plans, such as maternity care, hospitalization, substance abuse care and prescription drug coverage. Before the ACA, people had to pay extra for separate coverage for these benefits. For example, in 2013, 75 percent of non-group plans did not cover maternity care, 45 percent did not cover substance abuse disorder services, and 38 percent did not cover mental health services. Six percent did not even cover generic drugs.
  • Reinstate Lifetime and Annual Limits. Repealing the Affordable Care Act means insurance companies would be able to impose annual and lifetime limits on coverage.
  • Large Employers Could Choose to Follow Any State’s Guidance, Enabling Them Put Annual and Lifetime Limits on Their Employees’ Health Care. Without the ACA’s definition of essential health benefits (EHB) in even some states, states could eliminate them altogether. Large employers could choose to apply any state’s standard, making state regulations essentially meaningless. Because the prohibition on annual and lifetime limits only applies to essential health benefits, this change would allow employers to reinstate annual and lifetime limits on their employees’ coverage.

Lamar Alexander Blames Democrats for Premiums, Ignoring Insurance Company Which Blames Republican Sabotage

Last night, Sen. Lamar Alexander once again lied about the rising premiums in his state, attempting to blame Democrats for problems caused by his party in Washington.

What did Sen. Alexander say? Per the Chattanooga Times Free Press, he blamed Democrats for Tennessee’s premiums:

“Since Democrats in Congress have elevated Obamacare to the 67th book of the Bible, and have blocked even minor changes to the law that could have lowered rates by up to 40 percent, it is up to the states and the administration to continue to help lower premiums.’”

What did BlueCross BlueShield of Tennessee say? That they were raising people’s premiums by $649.28 next year specifically because of the Trump Administration’s decision to freeze risk adjustment payments:

Sen. Alexander: stop denying that GOP sabotage is costing Tennesseans.

Republicans Knew Premiums Would Go Up When They Sabotaged Your Health Care, But They Did It Anyway

For the past year and a half, Republicans have waged a non-stop war against the Affordable Care Act. Throughout 2017, Republicans tried time after time to repeal the Affordable Care Act, slashed funding for outreach, ended cost-sharing reduction payments that helped low income Americans afford health care, and passed a tax bill that the Congressional Budget Office predicts will strip health care from 13 million Americans and raise premiums by double digits.  

Throughout their many layers of sabotage, Republicans have played ignorant, trying to cover up the fact that their votes will send Americans’ premiums skyrocketing. Just this morning, former HHS Secretary Tom Price called out Republicans’ lies, saying that the tax bill’s repeal of the individual mandate “will harm the pool in the exchange market, because you’ll likely have individuals who are younger and healthier not participating in that market, and consequently, that drives up the cost for other folks within that market.”

Just one month after voting for a tax bill that the CBO projected would raise insurance premiums by double digits, Sen. Ted Cruz acted as though he had wanted to lower premiums the whole time: “I think lowering premiums is a win-win for everybody…The number one reason people despise Obamacare is that premiums have skyrocketed.” As much as Republicans try to distance themselves from it, the fact of the matter is clear: they knew they were voting to raise premiums, and they chose to do it anyway.

EACH STEP OF THE WAY, EXPERTS WARNED THAT SABOTAGE WOULD DRIVE PREMIUMS UP

The Trump Administration Deliberately Tried To Reduce Enrollment Of Healthy Individuals By Halting Outreach, Despite Commonly Understood Consequence That This Would Increase Premiums.

  • January 2017: In “Transparent Effort To Damage Stability Of Health Insurance Marketplace,” President Trump Abruptly Halts Open Enrollment Ads. In the final week of open enrollment, President Trump ended ads that let people know they could sign up for the Affordable Care Act. As Politico notes, “The last five days of the open enrollment season are seen as critical because many individuals procrastinate and then join a last-minute sign-up surge. That’s particularly true for younger and healthier customers who are crucial to making insurance markets work.”
  • February 2017: Analysis Shows Trump’s Cuts To Outreach Prevent Nearly 500,000 People From Getting Coverage. Following Trump’s initial cuts to outreach, it was estimated that Trump’s cuts blocked nearly 500,000 people from getting coverage. When fewer healthy people are able to purchase care, experts agree that premiums increase.
  • August 2017: Trump Administration Cuts Aca Advertising Budget By 90 Percent, Despite Evidence That It Will Cause Premiums To Increase. [Vox, 8/31/17]
  • Because The Administration Still Refuses To Adequately Fund Outreach, Insurance Commissioners Warn That Premiums Will Continue To Increase. Peter Lee, the head of California’s ACA Marketplace wrote in a letter to HHS that premiums would go up because of the Administration’s failure to properly fund outreach: “The reality is clear: If the federal government maintains the current cuts in marketing and outreach, premiums will be higher than necessary, consumers will be hurt as a result and taxpayers will pay the price by supporting higher [than] necessary subsidies. This does not need to happen and can easily be avoided…Drops in new enrollment are a formula for a worse risk mix and higher premiums.” [Letter to HHS, 4/25/18]

Months Before The Trump Administration Ended Payments That Helped Lower Income Americans Afford Insurance, The CBO Warned That Doing So Would Raise Premiums By 20 Percent. President Trump Ended Them Anyway:

  • August 2017: CBO Warns That Premiums Will Increase By 20 Percent If Cost-Sharing Reduction Payments Are Terminated. “If President Trump follows through on his threat to stop paying billions of dollars of subsidies critical to insurance plans under the Affordable Care Act, insurance premiums for certain plans would rise by 20 percent next year, according to a new analysis by the nonpartisan Congressional Budget Office.” [Washington Post, 8/15/17]
  • October 2017: Trump Administration Decides To Halt Cost-Sharing Reduction Payments. Despite the CBO’s warning that ending cost-sharing reduction payments (CSRs) would cause premiums to rise by 20%, the Trump Administration decided to do so anyways. [Washington Post, 10/13/17]
  • After The Fact, Insurance Commissioners Did Exactly What The Cbo Said Would Happen — They Raised Premiums. Jessica Altman, Pennsylvania Insurance Commissioner: This is not the situation I hoped we would be in, but due to President Trump’s refusal to make cost-sharing reduction payments for 2018 and Congress’s inaction to appropriate funds, it is the reality that state regulators must face and the reason rate increases will be higher than they should be across the country.” [CNN Money, 10/17/17]
  • Now, Research Confirms That Ending CSRs Caused Premiums To Jump, And Is Expected To Do So Again In 2019. RWJ’s interviews with ten insurance companies found that the loss of cost-sharing reduction plan reimbursements drove premium increases in 2018 ranging from 10 to 20 percent. [Robert Wood Johnson Foundation and Urban Institute, 3/19/18]

Republicans Knew That Repealing The Requirement That Most People Have Insurance Would Drive Up Premiums, And Rushed To Do So Without Public Comment:

  • November 2017: Congressional Budget Office (CBO) Estimates That Repealing The Individual Mandate Will Push Premiums Up By 10 Percent Annually. Last fall, the nonpartisan Congressional Budget Office released numbers that repealing the requirement that most people have insurance would increase premiums by roughly 10 percent each year for the next decade. [Congressional Budget Office, November 2017]
  • November 2017: Sen. Susan Collins Acknowledges That Repealing Individual Mandate Would Raise Premiums. “‘One of the major concerns I had was the impact on premiums of repealing the individual mandate,’ [Collins] said Tuesday, referring to government estimates that repealing the mandate would raise insurance premiums by at least 10 percent as healthier consumers leave the market.” [Talking Points Memo, 11/29/17]
  • December 2017: Republican Senate Hurries To Pass Final Gop Tax Bill, Which Repeals Individual Mandate Despite Cbo Analysis That It Will Drive Premiums Up, In The Dark Of The Night And Without Public Hearings. Senate Republicans were determined to stop discussion on their tax bill from ever seeing the light of day. In December, they passed their tax bill in a matter of weeks, without hearing any public hearings. The process was so rushed that entire pagers were crossed out of the final version of the bill, and amendments were handwritten and barely legible.

After Sen. Collins Exchanged Her Vote On The Tax Bill For A Promise To Pass ACA Stabilization, Republicans Sabotage Bipartisan Efforts To Pass Bill That Would Help Control Premium Hikes:

  • December 2017: To Counteract The Increase In Premiums That Would Follow Repealing The Individual Mandate, Sen. Susan Collins Exchanges Tax Bill Vote For Aca Stabilization Bill. Sen. In exchange for her vote on the GOP tax bill, Majority Leader Mitch McConnell, President Trump, and Vice President Trump committed to passing a health care stabilization measure. [Washington Post, 12/15/17]
  • March 2018: After Pushing The Stabilization Vote Into The Next Year, Republicans Refused To Vote On Stabilization Unless Democrats Agreed To A List Of Deal Breaking Demands. In the middle of bipartisan negotiations on stabilization, the White House released its list of demands, including: Expanding the Hyde abortion language, codifying the Administration’s Short-Term proposal into law that undermine protections for people with pre-existing conditions, expanding Health Savings Accounts (HSAs) that is essentially another tax cut for the wealthy, mposing an age tax on older Americans by letting insurers charge people over 50 five times more than younger people. [White House Document, obtained by Politico, 3/8/18]
  • March 2018: There Is No Vote On Stabilization. [New York Magazine, 3/26/18]

Ignoring Warnings From Health Insurers, Trump Administration Proposes Changes To Short-Term Health Plans That Would Drive Up Premiums For Americans In Individual Marketplace:

  • July 2017: In Letter To HHS, America’s Health Insurance Plans Warns That Allowing Short-Term Plans To Offer Coverage For More Than Three Months At A Time Will Drive Up Premiums. “A blanket extension of the permitted length of short term policies will draw lower risk people out of the individual market single risk pool and drive up premium costs for consumers.” [America’s Health Insurance Plans Letter To HHHS, 7/12/17]
  • October 2017: President Trump Signs Executive Order That Expands Access To Short-Term Health Plans. President Trump’s executive order allows short-term plans to last for 12 months and be renewable, a notable change from the previous rule, which limited these plans to three months and prevented them from being renewed. [The Atlantic, 10/12/17]
  • February 2018: Administration Releases Fact Sheet On Short-Term Rule That Would Allow Insurers To Sell Year-Long Plans. [Centers for Medicare & Medicaid Services, 2/20/18]
  • March 2018: Nonpartisan Urban Institute Says Premiums Will Increase By Nearly 20 Percent. Confirming what experts had warned of, the Urban Institute calculated that increasing the availability of short-term health plans, when combined with the repeal of the individual mandate, would lead premiums to increase by an average of 18.3 percent in 2019. [Urban Institute, March 2019]
  • March 2018: AARP Analysis Projects Short-Term Plans Will Cause Older Americans’ Premiums To Increase By 16.6 Percent. As a result of President Trump and his Republican allies’ pushing junk insurance plans, AARP expects premiums for older Americans buying marketplace health coverage to increase by an average of 16.6 percent in 2019.  [AARP, 3/21/18]

Each Of The Administration’s Decisions Is Designed Drive People Off Of Health Care And Increase Premiums:

  • Katherine Hempstead, health insurance expert at Robert Wood Johnson Foundation: Anything That Undermines The ACA-Compliant Risk Pool Is Bad For Premiums.  “Anything that undermines the ACA-compliant risk pool is bad for premiums in the ACA market…Every exit ramp makes that market more expensive and less competitive than it otherwise would be.” [Modern Healthcare, 4/26/18]

NOW, THE CONSENSUS IS IN: REPUBLICANS KNOWINGLY DROVE UP PREMIUMS

Vox: Republican Sabotage To Blame For Premium Hikes. “The Trump administration’s multifaceted crusade against the health care law — slashing outreach budgets and pulling the law’s cost-sharing reduction payments to insurers — were already to blame for a 20 percent premium hike this year. Then Congress repealed the individual mandate in their tax bill, a huge political victory given the GOP’s vehement opposition to the mandate but one that insurers have said would drive up premiums even more next year.” [Vox, 4/25/18]

Washington Post: “The Pottery Barn Rule Comes To Mind: You Break It, You Own It.” “This is not ‘letting’ Obamacare fail. Many nonpartisan experts believe that these active measures are likely to undermine the pillars of the 2010 law and hasten the collapse of the marketplaces. The Pottery Barn rule comes to mind: You break it, you own it. Yes, the plate you just shattered had some cracks in it. But if you dropped it on the ground, the store is going to blame you.” [Washington Post, 10/13/17]

The American People Agree: President Trump And Congressional Republicans Are Playing Politics With People’s Health Care. A poll conducted last September found that 61 percent of voters believed President Trump was “trying to make the Affordable Care Act fail,” and 64 percent of voters said Trump is “playing politics with people’s health care.” The poll also found that the American people seriously disapprove of how Republicans in Congress are treating health care: 80 percent of voters disapprove while only 20 percent approve. [Garin Poll, 9/5/17]

RECENT HEADLINES PAINT A TELLING PICTURE

EVEN REPUBLICANS ADMIT THEY’RE TO BLAME

Sen. Lamar Alexander: “Rates Will Go Up…They’re Going To Blame Every One Of Us, And They Should.” On the topic of failing to pass a stabilization bill, Sen. Alexander said: “Rates will go up. The individual market will probably collapse…There will be 11 million people who are between jobs, who are self-employed, who are working, who literally cannot afford insurance, and they’re not going to be very happy. And they’re going to blame every one of us, and they should.” [Vox, 4/25/18]

Lindsey Graham: Republicans “Own The Outcome” On Health Care. “Sen. Graham told Breitbart News, ‘In October, premiums are going up. Obamacare cannot be fixed. It’s going to continue to collapse, and then, we own the outcome. By repealing the individual mandate, which is a step forward in the eyes of the public, we own the issue. We have a responsibility to do something about the collapsing Obamacare system. I believe that we’re going to get blamed more than Democrats because we stopped trying to repeal Obamacare, and to suggest that we don’t own it is just simply politically naive.’ Graham continued, ‘It can hurt us in 2018. It can hurt by our base feeling like we betrayed them. It can hurt us from people suffering from Obamacare, like we don’t have a solution. It will energize Democrats. It can undercut everything we did on the tax cut side.'” [Breitbart, 2/6/18]

Rep. Charlie Dent: Republicans “Own” Health Care Now. “Rep. Charlie Dent (R-Pa.) argued Friday that President Trump was ‘ill-advised’ to end key ObamaCare payments, warning that the GOP now ‘owns’ whatever happens to ObamaCare. ‘I think the president is ill-advised to take this course of action because … we, the Republican Party, will own this,’ Dent, a key House moderate who is retiring from Congress at the end of his term, said on CNN. Asked about Trump’s previous comments blaming problems with ObamaCare on former President Barack Obama, Dent pointed out that Republicans currently control the White House and have majorities in both chambers of Congress. ‘Barack Obama is a former president. President Trump is the president and he’s a Republican, and we control the Congress,’ Dent said. ‘So we own the system now. We’re going to have to figure out a way to stabilize this situation … This is on us.'” [The Hill, 10/13/17]

The Alexander-Collins Sham Stabilization Bill

Protect Our Care Campaign Chair Leslie Dach released the following statement on the sham, partisan Alexander-Collins health care stabilization bill:

“The Alexander-Collins legislation should be rejected. It is bad for Americans’ health care. This proposal would result in net coverage losses, higher out-of-pocket costs, and fewer coverage options for many Americans. Despite what Republicans may be publicly saying, Alexander-Collins is not a serious attempt to stabilize the marketplaces. House Republicans admit they oppose stabilization. And Republicans are insisting on a poison pill that would further their war on women’s health. This proposal is a partisan bill designed to fail, and it represents nothing more politics at its worst from elected officials who otherwise have voted to repeal Americans’ health care.”

BACKGROUND

  • The Republican “stabilization” bill includes expansive and restrictive new anti-abortion policy that would have far-reaching consequences for women’s health. Republicans claim they want to apply the existing ‘no federal funding for abortions’ Hyde Amendment to stabilization legislation, but are in fact proposing something entirely new: language that would result in an effective ban on private insurance coverage for abortion, including in plans purchased by private individuals using no federal money, which experts predict would coerce insurance companies into dropping abortion coverage from all plans, both on and off the Marketplace, in order to receive CSRs or reinsurance payments.
  • This proposal would ban a woman from using her own money to buy insurance that covers a medical service the Supreme Court says she has a constitutional right to access and represent a new frontier in Republicans’ war on women’s health. And it’s entirely hypocritical, because the Affordable Care Act was signed into law with restrictions that prohibit insurance companies from using public funds for abortion coverage, with President Obama even having signed an executive order emphasizing that none of its funds can be used to cover abortion services.
  • As Aviva Aron-Dine with the Center on Budget and Policy Priorities explains, the CBO finds that this legislation would result in net coverage losses, with larger losses for moderate-income consumers than gains for middle- and upper-income consumers. Ultimately, this legislation would result in net coverage losses between 500,000 and one million people.
  • Moreover, Aron-Dine notes that the CBO has confirmed that the federal savings from restoring CSRs come from coverage losses, higher premiums, and higher out-of-pocket costs for those with incomes below 400 percent of the federal poverty line, which would result in worse outcomes for consumers between 200 and 400 percent of the poverty line. In fact, the savings would come from a combination of consumers dropping coverage and those maintaining coverage being forced to pay more for doing so.
  • When Republicans’ constituents face double-digit premium increases in the fall because their Congressmen scuttled stabilization, they’ll know exactly who to blame.

Key Quote: ‘Nobody in that room voted for Obamacare, so the idea you’re going to vote for billions of dollars to stabilize a system you never supported in the first place — pretty hard to choke down,’ said Rep. Tom Cole (R-Okla).”