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Last updated on Thursday, June 21, 2018
(WASHINGTON, D.C.) - U.S. Senator Joe Donnelly released the following statement today after Centene and CareSource filed their 2019 plans for Indiana’s health insurance marketplace, with a proposed average premium increase of 5.1%.
Unfortunately, recent actions from the Trump Administration have followed the deliberate, repeated efforts by the Administration and some in Congress to undercut and undermine the health care law that began on Day 1 of the Trump Presidency. Both Centene and CareSource suggested that premiums would have been lower if not for actions by the Administration and some in Congress.
Centene has stated that it plans to offer coverage in all 92 counties with some plans in central Indiana counties expected to see a 5.4% increase. CareSource is expected to offer plans in 79 counties with an average premium increase of 10.2%, including a 33.6% increase for some plans in Allen County.
Donnelly said, "After insurance companies filed their proposed individual market plans for 2019, it's clear that some Hoosiers could see higher premiums and these rate hikes are unwelcome news. These health care cost increases are unnecessarily being driven by the Administration's continued and deliberate efforts to undermine the marketplaces. As I've repeatedly said, we should be working to make quality health care more affordable, and I remain open and ready to partner on bipartisan efforts that will improve our health care system."
Concern from CareSource, Centene, & AARP on Administration Sabotage Efforts
Both public and private analyses show that the Trump Administration's sabotage strategy and the efforts by some in Congress to repeal the health care law have continued to destabilize the insurance markets and are again expected to increase costs for Hoosiers. The tax law, which President Trump signed into law late last year, is projected to cause 13 million more Americans to be uninsured and raise health insurance premiums by 10 percent.
Donnelly has heard from insurers currently offering health care coverage in Indiana and from patients groups, all concerned about the instability in the marketplace and the negative impact it is having consumers' premiums.
CareSource wrote to Senator Donnelly, expressing concern over actions by the Administration and some in Congress that are destabilizing the insurance markets. CareSource cited the Tax Cuts and Jobs Act and the Administration's proposed rules on short-term junk plans as some of the factors they are considering when setting rates for 2019, and said "efforts to undermine the ACA have directly driven annual premium increases that have priced the desired healthcare coverage out of reach for many consumers."
Centene wrote to Senator Donnelly with similar concerns, stating, "For 2019, challenges include the uncertainty linked with the repeal of the individual mandate penalty and the Administration's proposed lengthening of short-term, limited-duration insurance plans." Speaking about the proposed short-term plan rule, Centene said, "consumers in ACA marketplaces will likely face higher premiums as the overall health of that risk pool is compromised."
AARP in a letter to Senator Donnelly, said, "AARP is strongly opposed to the Administration's proposed rule to expand skinny plans because this proposal would dramatically undermine the existing individual market--and lead to higher insurance premiums--by encouraging an influx of plans that don't need to meet the ACA's consumer protection threshold... Should skinny plans be expanded under the proposed rule, age rating discrimination on those policies will likely increase, further fragmenting the insurance market, and leading to even higher premiums for older Americans."
Further Background on the Administration's Ongoing Efforts to Undermine Health Care Marketplaces
Among recent actions that have undermined health care and the insurance markets:
TAX LAW: Congress passed and the President enacted the Tax Cuts and Jobs Act, which repealed a fundamental health care provision without providing any replacement. President Trump said that the Tax Cuts and Jobs Act "essentially repealed Obamacare, and we will come up with something that will be much better," but there has still been no replacement offered or enacted.
As a result, the nonpartisan Congressional Budget Office (CBO) projected that the Tax Cuts and Jobs Act will cause 13 million more Americans to be uninsured and will raise health insurance premiums by 10 percent.
SHORT-TERM "JUNK" PLANS: On February 20, 2018, the Trump Administration proposed a rule that would allow short-term, limited-duration insurance plans to be sold for up to 12 months. Currently, these off-market "junk" plans can only be sold for up to 3 months.
These plans do not have to cover essential health benefits, like mental health and prescription drugs. Coverage can also be denied based on pre-existing conditions or limited by the imposition of annual or lifetime caps.
The independent Urban Institute projected that health insurance premiums in Indiana's individual market will rise 19.6% in 2019 due to policy changes including the tax law and the proposed short-term plan rule. AARP projected that these changes will cause premiums for a 60-year-old Hoosier to increase more than $1,600 in 2019.
EFFORT TO END PROTECTIONS FOR THOSE WITH PRE-EXISTING CONDITIONS:
Earlier this month, the Trump Administration argued in a federal court brief that pre-existing conditions coverage should be ruled unconstitutional, adding more uncertainty into the insurance marketplaces.
According to the Kaiser Family Foundation, approximately 30 percent of Hoosiers under the age of 65 (more than 1.1 million people) have pre-existing conditions that could have left them with no coverage or facing higher rates, under rules prior to the health care law.
In addition, the Administration's brief supports eliminating limits on how much insurance companies can charge people based on gender, age, and health status.
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