In the News

Democratic leaders in the House of Representatives on Wednesday unveiled a sweeping health care package to strengthen the benefits of the Affordable Care Act, lowering the costs of insurance premiums, expanding eligibility for premium tax credits and allowing states to create state-based health insurance marketplaces.

Democrats framed the proposals as a way to protect the Affordable Care Act, the landmark health care expansion bill signed by President Barack Obama, from the Trump administration’s ongoing attacks in court.

“Tomorrow, the Supreme Court will hear a brief from the Trump administration on taking down the (Affordable Care Act) right in the heart of a pandemic,” House Speaker Nancy Pelosi said. “It was wrong anytime, now it’s beyond stupid.”

Pelosi blasted Trump and his allies as hypocritical for pledging to protect coverage for Americans with pre-existing conditions first guaranteed by the Affordable Care Act, which Trump administration lawyers seek to overturn.

The Democrats, complaining that Americans pay up to 10 times as much as people in other countries for the same medicines, said the Patient Protection and Affordable Care Enhancement Act announced Wednesday would empower the Secretary of Health and Human Services to negotiate lower drug prices and make those lower prices available to Americans with private insurance.

The Congressional Budget Office estimated that drugs subject to negotiation could see price drops of up to 55% if the bill passes, according to a news release from the office of Rep. Richard Neal, chairman of the House Ways and Means Committee.

“The wellbeing and security of American families and the workers of our nation are at stake,” Neal said by video during a news conference with Pelosi and other Democrats.

The legislation expands eligibility for premium tax credits beyond 400 percent of the federal poverty line, and bumps up the size of tax credits for all income brackets.

“No person will pay more than 8.5 percent of their income in the Silver plan in the marketplace,” Neal said, referencing the most common Health Insurance Marketplace plan, which calls for moderate monthly premiums and moderate costs when care is needed.

Neal noted that if the bill passed, a family of four earning $40,000 could save about $1,600 in annual premiums. A 64-year-old earning $57,000 could save more than $8,000 each year in premiums. And an individual earning $19,000 would see premiums cut to zero, saving about $800 a year, Neal said.

“These are significant savings that would make a big difference for Americans during this crisis,” he added.

The package will cost the federal government more than $170 billion over the next five years, according to estimates from the Congressional Budget Office. But CBO estimated that by 2030, the bill would have a total net negative impact on the federal deficit, largely driven by annual increases in savings, totaling more than $500 billion over the next decade, through the bill’s Fair Price Negotiation Program to lower drug costs.

Rep. Bobby Scott of Virginia, chairman of the Education and Labor Committee, said the “global health emergency is a stark reminder of our responsibility to expand access to affordable health care, and that is exactly what the Affordable Care Enhancement Act would achieve.”

The bill also creates a national reinsurance program, helping cover the costs of patients with expensive medical conditions. The lawmakers noted the bill puts an end to the Trump administration’s expansion of “junk” insurance plans and prevents states from using federal waivers to allow discrimination against people with pre-existing conditions.

The legislation also addresses inequalities in health care, expanding health care and premium assistance to more Black and Hispanic Americans; combating maternal mortality rates by extending Medicaid or Children’s Health Insurance Program (CHIP) coverage to new mothers from 60 days post-partum to one year; and protecting CHIP beneficiaries from interruptions in annual coverage due to income fluctuations.