Seema Verma, Medicare and Medicaid Administrator: President Trump Commits to Repair ObamaCare
Seema Verma, Medicare and Medicaid Administrator: President Trump Commits to Repair ObamaCare
For millions of Americans who buy their health insurance in the volatile individual market, the fall is received with fear. That was the time of year, under ObamaCare, when insurers released their rates and plan selections. Increases in double-digit premium rates were widespread and many consumers were affected by cancellation notices from insurers who abandoned the plans or left the market altogether.
The Trump administration inherited this chaos in the market and, once President Trump took office, he acted immediately to help the people harmed by ObamaCare. The results of his immediate action are already showing, as the administration has expanded the options of affordable coverage and has restored the freedom of people to finance their medical care as they wish. In addition, the individual health insurance market has gone from falling freely to one that offers a wider choice and is more stable.
Despite public promises made at the time of ObamaCare's approval, an estimated 4.7 million Americans could not keep their plans. Fewer options and rising costs led many middle-class consumers to leave the market altogether, raising premiums for those who stayed behind.
As a result of ObamaCare, average premiums on the federal stock exchange increased by 105 percent between 2013 and 2017. At the same time, many states saw the number of insurance providers, and consumer choice, drastically decrease. Many of those left with a limited network plan to choose from found that they could not keep their doctor as promised.
Fortunately, these chaotic tendencies are now changing. For the first time since ObamaCare was enacted, the premium for a typical federal exchange plan, while still too high, will be reduced. In the 39 states that use the federal exchange, insurers have proposed cutting the premiums on these reference plans by an average of 1.5 percent. This is a dramatic departure from the double-digit rate increases so common in recent years.
As we work to reverse the damage of ObamaCare, we have not forgotten the many Americans who are currently left without affordable options or the rising costs for taxpayers.
And, in some cases, the decrease in premiums is significant. In Tennessee, for example, the average premium for the benchmark plan is expected to plummet by 26 percent. Pennsylvania residents will also experience a decrease in the average premium of 16 percent.
In addition, there is an increase of 23 more insurers participating in federal exchanges, which is an increase for the first time since 2015. As a result, in the areas covered by the federal exchanges, the proportion of counties with only one insurer will decrease. from 56 percent to 39 percent, which allows consumers a greater choice between plans.
These improvement market trends are not an accident. Contrary to detractors who claim that the Trump administration is bent on sabotaging the market, we have helped millions of American families and thousands of small businesses through several key actions.
President Trump signed legislation that annuls the individual tax fine, a perverse tax that mainly affects low-income families by charging people for not buying something they could not afford.
In the first month of administration, we issue regulations that reduce the ability of people to wait until they need medical attention to enroll in coverage. We are also giving states the flexibility to repair their insurance markets instead of subscribing to the mandatory one-size-fits-all approach of the previous administration.
As an example, we have approved seven state exemptions that provide federal assistance to help states pay for sicker patients and allow insurers to keep premiums lower, all without increasing the burden on taxpayers. These resignations seem to be working. For example, Wisconsin residents will see their individual market premiums decrease by an average of 11 percent due to the exemption.
This summer, when a court annulled a regulation by the Obama administration regarding payments to insurers that disproportionately enrolled people with higher health risks, the administration issued an emergency regulation to make payments.
As we work to reverse the damage of ObamaCare, we have not forgotten the many Americans who are currently left without affordable options or the rising costs for taxpayers.
In accordance with an Executive Order issued by the president, the administration opened more affordable coverage options in two ways this year. First, the Department of Labor issued a rule to expand the Health Plans of the Association, facilitating the union of small employers and offering more valuable coverage for their workers.
In addition, we recently finalized the rules that expand the availability of short-term and limited-term medical coverage that can be 50 to 80 percent more affordable than ObamaCare plans.
ObamaCare advocates said that these actions would destroy the law, and yet positive market trends are proving that these critics are wrong. Despite these positive trends, we are not complacent and the reality is that the rates and the burden for taxpayers are still too high. There is a lot of work to be done. The Trump administration is committed to continuing its work to increase options and competition and reduce consumer costs.
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