Payers slam Cruz proposal to sell ACA-noncompliant plans under Senate bill

Health insurers are speaking out in opposition to a proposal by Republican Sens. Ted Cruz of Texas and Mike Lee of Arizona that would allow payers to offer plans that don't meet ACA coverage requirements, according to Politico.

The amendment to the Senate's Better Care Reconciliation Act is meant to increase consumer choice and lower premiums for plans in the individual market. However, critics insist the change would threaten access to coverage to high-need, high-cost individuals.

Blue Cross Blue Shield Association CEO Scott Serota sent a letter to Mr. Cruz and Mr. Lee July 12 in which he warned that the proposal is "unworkable, as it would undermine pre-existing condition protections, increase premiums and destabilize the market."

America's Health Insurance Plans sent out a memo describing similar concerns. "Stable and well-functioning insurance markets require broad-based enrollment and a stable regulatory environment that facilitates fair competition and a level playing field," the memo reads.

"Unfortunately, this proposal would fracture and segment insurance markets into separate risk pools and create an un-level playing field that would lead to widespread adverse selection and unstable health insurance markets. This is particularly true for patients with pre-existing conditions — who would be most affected and potentially lose access to comprehensive coverage and/or have plans that were far more expensive, as premiums in the exchange market would rise much faster than under existing market conditions and insurance options dwindle."

According to Politico, opposition to the Cruz-Lee amendment will likely create a barrier as senators work to pass a repeal package. An updated proposal was revealed July 13.

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