Two of the insurance industry's
most powerful organizations say a crucial provision in the Senate
Republican health care bill allowing the sale of bare-bones policies is
"unworkable in any form," delivering a blow to party leaders' efforts to
win support for their legislation.
The language was crafted by
conservative Sen. Ted Cruz, R-Texas, and leaders have included it in the
overall bill in hopes of winning votes from other congressional
conservatives. But moderates have worried it will cause people with
serious illnesses to lose coverage, and some conservatives say it
doesn't go far enough.
Two of the 52 GOP senators have already said they
will oppose the legislation. Senate Majority Leader Mitch McConnell
cannot lose any others for the legislation to survive a showdown vote
expected next week.
The overall measure represents the Senate GOP's
attempt to deliver on the party's promise to repeal President Barack
Obama's health care law, which they've been pledging to do since its
2010 enactment.
The criticism of Cruz's provision was lodged in a
rare joint statement by America's Health Care Plans and the BlueCross
BlueShield Association. The two groups released it late Friday in the
form of a letter to McConnell, R-Ky.
"It is simply unworkable in any form," the letter
said. They said it would "undermine protections for those with
pre-existing medical conditions," increase premiums and lead many to
lose coverage.
The provision would let insurers sell low-cost
policies with skimpy coverage, as long as they also sell policies that
meet a stringent list of services they're required to provide under
Obama's law, like mental health counseling and prescription drugs.
Cruz says the proposal would drive down premiums and give people the option of buying the coverage they feel they need.
Critics say the measure would encourage healthy
people to buy the skimpy, low-cost plans, leaving sicker consumers who
need more comprehensive coverage confronting unaffordable costs. The
insurers' statement backs up that assertion, lending credence to wary
senators' worries and complicating McConnell's task of winning them
over.
The two groups say premiums would "skyrocket" for
people with preexisting conditions, especially for middle-income
families who don't qualify for the bill's tax credit. They also say the
plan would leave consumers with fewer insurance options, so "millions of
more individuals will become uninsured."
According to an analysis by the BlueCross BlueShield
Association, major federal consumer protections would not be required
for new plans permitted by the Cruz amendment.
Among them: guaranteed coverage at standard rates for
people with pre-existing conditions, comprehensive benefits, coverage
of preventive care -- including birth control for women -- at no added
cost to the consumer, and limits on out-of-pocket spending for
deductibles and copayments.
The bill provides $70 billion for states to use to
help contain rising costs for people with serious conditions. But the
insurance groups' statement says that amount "is insufficient and
additional funding will not make the provision workable for consumers or
taxpayers."
The Cruz provision language in the bill is not final.
McConnell and other Republicans are considering ways to revise it in
hopes of winning broader support.
McConnell and top Trump administration officials plan
to spend the next few days cajoling senators and home-state governors
in an effort to nail down support for the bill.
The nonpartisan Congressional Budget Office is
expected to release its analysis of McConnell's revised bill early next
week, including an assessment of Cruz's plan.
The office estimated that McConnell's initial bill would have caused 22 million additional people to be uninsured.