Sen. Ted Cruz wants to let insurers opt out of selling plans that abide by Obamacare’s insurance mandates as long as they keep one plan that does.
Cruz is one of four Republican senators who say they can’t support the draft bill released by GOP leaders, and said the reason for his opposition is that the bill doesn’t do enough to lower premiums. Giving insurers more flexibility not to meet Obamacare mandates would be one way to help create lower prices.
“We need common sense reforms to reduce the cost of premiums,” he told reporters Thursday.
One of the compromises he is floating would let insurers offer plans that don’t meet Obamacare’s insurer mandates such as essential health benefits like maternity care or hospitalization.
The idea, which began with a 2015 opinion piece from former Sen. Phil Gramm, would force insurers to sell one plan on Obamacare’s exchanges that met the law’s mandates. That same insurer could then sell plans in the same state that don’t meet the mandates.
“It leaves existing plans on the market but it gives new options so that people can purchase far more affordable health insurance,” Cruz said.
Conservatives have turned to Obamacare’s mandates as sources for high premiums. Mandates that insurers have to abide by include not charging sick people more money than others, and banning lifetime caps on plans.
It remains unclear if the idea could gain any traction as leadership tries to bring Cruz and three other senators on board. The other GOP senators opposing the bill are Rand Paul of Kentucky, Ron Johnson of Wisconsin and Mike Lee of Utah. Sen. Lindsey Graham, R-S.C., seemed to like the idea though.
“I think that kind of choice would really matter,” he said.
