President Trump’s decision to allow states to waive key Obamacare protections directly violates the law, two top House Democrats charged Thursday.
Democratic Reps. Frank Pallone of New Jersey and Richard Neal of Massachusetts challenged the administration’s decision Thursday, asking in a letter for a justification for the move. The administration announced on Thursday it would allow states to get waivers to allow people to get federal subsidies for plans that don’t comply with Obamacare’s insurance regulations.
“It is contrary to the plain language of the statute, and it appears to be part of the Administration’s ideologically motivated efforts to sabotage the [Affordable Care Act],” the lawmakers said. Neal is expected to helm the House Ways & Means Committee next year when Democrats take power and Pallone to head the Energy & Commerce Committee.
Obamacare gives states flexibility under a waiver program to experiment with healthcare reforms, but they cannot ignore key guardrails, such as protections for people with pre-existing conditions.
The Trump administration expanded the program on Thursday to allow states to rewrite Obamacare’s rules to ensure that people who want to buy short-term plans can get subsidies under the law.
The subsidies are intended to lower the cost of premiums for Obamacare-compliant plans.
However, a short-term health plan is much cheaper than an Obamacare plan because it does not have to meet the law’s requirements to cover essential benefits or include protections for people with pre-existing conditions.
The Trump administration expanded earlier this year the duration of short-term plans from 90 days to nearly 12 months. The administration charges that the short-term plans are an “escape hatch” for people who find Obamacare’s premiums too expensive and don’t get the law’s income-based subsidies.
But Democrats charge that the plans are “junk insurance” that don’t cover vital medical conditions.
Pallone and Neal posed a series of detailed questions to the administration on the change and want an answer by Dec. 31.
“If allowed to go into effect, the Trump Administration’s proposed changes would allow the Secretary of Health and Human Services to approve waivers that do not provide coverage that is as affordable or as comprehensive as under the ACA,” they said.
