A collection of nine insurance, union, and business groups are fighting legislation meant to address the opioid epidemic because of a provision that would make private healthcare plans pay more to cover kidney disease under Medicare, a development that could complicate the bill’s passage as the Senate takes it up.
The groups joined together to write a letter to Senate leaders on Monday to protest a funding mechanism for the bill, called the SUPPORT for Patients and Communities Act, which passed the House in June. To pay for reforms to Medicare and Medicaid intended to combat the opioid crisis, the the bill would shift additional costs for treating kidney disease from Medicare to private insurers and plans.
The groups charge that private health plans will have to raise premiums or reduce coverage if they have to pick up those costs.
“While we strongly support congressional efforts to address the opioid epidemic, we are very concerned about offsets that would reduce the ability of private health plans to provide comprehensive, affordable healthcare coverage,” the letter said.
The insurance and health plan groups America’s Health Insurance Plans, Blue Cross Blue Shield Association, and the American Benefits Council signed on to the letter. The U.S. Chamber of Commerce and the unions United Steelworkers and Service Employees International Union also joined.
The House bill would redirect Medicare funds that go to covering kidney care services, such as dialysis, to instead cover addiction treatment programs. The bill looks to private plans to cover the loss of the funds.
Currently, under federal law, employer-based plans are responsible for kidney care for 30 months. After that period, Medicare becomes the primary payer.
However, the House bill would extend that timeframe to 33 months starting in 2020. That change would save Medicare $340 million over 10 years, according to the Congressional Budget Office.
But the groups charge the private plans would have to absorb those costs and could reduce coverage as a result.
