Congressional Democrats are questioning the legality of a plan by Idaho officials to overhaul Obamacare so insurers can offer cheaper and less robust healthcare coverage.
The letter to Health and Human Services Secretary Alex Azar and Centers for Medicare and Medicaid Services Administrator Seema Verma warns that Idaho’s proposal would endanger customers on Obamacare.
“The state of Idaho’s new guidelines eviscerate critical protections that are enshrined in federal law and have the potential to destabilize the health insurance market and raise premiums for thousands of consumers and families in the state of Idaho,” Democrats wrote. “Consumers in so-called ‘state-based plans’ will lose access to coverage for critical services, and these plans will drive up costs for people who purchase insurance that satisfies federal consumer protections, harming those who need healthcare most.”
Under Idaho’s proposal, insurers would be able to sell plans that deny coverage for pre-existing illnesses for up to 12 months unless the customer already had continuous prior coverage. Insurers wouldn’t be required to cover children’s vision or dental care and would need to offer only one plan with maternity coverage, rather than only plans that include it. The proposal would allow insurers to charge people more based on where they live and based on their medical history and their age.
Under Obamacare, health insurance plans are required to provide a range of medical services, and people cannot be charged more or denied coverage based on an illness. Idaho officials still would require insurers who sell plans to offer at least one option that meets Obamacare’s requirements.
It’s not clear the state’s proposal will be allowed. Idaho has not submitted a waiver, known as a 1332, to make the changes under Obamacare. The waiver allows for states to have some flexibility about how they implement the law but has specific stipulations that states must abide by, including that the proposals go through a state legislature first and that they must be approved by federal regulators.
The absence of a waiver application was noted in the Democrats’ letter.
“To date there has been no public confirmation that the state of Idaho received federal approval prior to releasing its guidelines,” they wrote in a release. “The state’s guidelines appear to be in violation of federal law under [Obamacare], which protects consumers with pre-existing conditions, guarantees pediatric dental and vision coverage, and prevents insurers from charging consumers more for maternity and newborn care.”
Democrats are requesting documentation to demonstrate whether the Trump administration believes the proposal complies with federal law. They asked for communications between state and federal health officials and studies conducted on how the proposal will affect residents.
The letter sent Wednesday was signed by House Energy and Commerce Ranking Member Frank Pallone Jr. of New Jersey, House Ways and Means Ranking Member Richard Neal of Massachusetts, Senate Health Education, Labor and Pensions Committee Ranking Member Patty Murray of Washington, and Senate Finance Ranking Member Ron Wyden of Oregon.
