Statement from Peter V. Lee on the Administration’s Latest Effort to Undercut Broader Coverage Through the Affordable Care Act
SACRAMENTO, Calif. — Covered California Executive Director Peter V. Lee released the
following statement on a proposed rule from the Centers for Medicare and
Medicaid Services that would allow states to eliminate www.Healthcare.gov and undercut the Affordable
Care Act.
Click
here to see the proposed rule.
“The proposed rule builds on years of
actions by the outgoing administration to undercut the Affordable Care Act.
Instead of marketing and promoting coverage options for millions of Americans, as
they should during a pandemic, this proposed rule undermines efforts to get
insurance coverage to those most in need.
The rationale for the proposed reduction of user fees is to “allow
issuers to then pass on the savings to consumers,” which
belies the reality that multiple policies enacted by this administration have
resulted in premiums throughout much of the nation being far higher than they
should be. These actions have priced millions of unsubsidized Americans out of
coverage. Proclaiming that a reduction of user fees leads to a reduction of
premiums flies in the face of the reality that well-spent marketing dollars by
this administration would have had a five-to-one return on lowering health care
costs for Americans.
Further, the policies of the outgoing administration have had
nothing to do with lower premiums in the individual market. In 2020, premiums
were lower in much of the nation due to a rebound from overpricing by health
plans, while 2021 rates dipped across the nation because millions of Americans
delayed and deferred care amidst the COVID-19 pandemic. Better profits for
health plans should not be the marker of an effective marketplace.
The user fees can and should be well spent to make sure
health plans are held accountable for delivering high-quality care and
addressing health disparities. This proposal serves to reduce resources for
ensuring more Americans know about and secure more affordable health coverage
options for themselves and their families.
Now is a time when we should be leaning in and assuring
health plans put consumers first, not running in the opposite direction. Fortunately, the new administration will have the
opportunity to consider this proposal and respond in a way that best addresses
the needs of Americans.”
About
Covered California
Covered California
is the state’s health insurance marketplace, where Californians can find affordable,
high-quality insurance from top insurance companies. Covered California is the
only place where individuals who qualify can get financial assistance on a
sliding scale to reduce premium costs. Consumers can then compare health
insurance plans and choose the plan that works best for their health needs and
budget. Depending on their income, some consumers may qualify for the low-cost
or no-cost Medi-Cal program.
Covered
California is an independent part of the state government whose job is to make
the health insurance marketplace work for California’s consumers. It is
overseen by a five-member board appointed by the governor and the Legislature.
For more information about Covered California, please visit www.CoveredCA.com.
