Twelve Democratic senators signed a March 19 letter detailing their plan for health insurance reforms.
The letter said Senate Finance Committee Democratic staff will design policies to elevate affordability, break down barriers to accessing insurance and rein in insurance companies. The signatories directly blamed Republicans for healthcare cuts, specifically the failed extension of ACA enhanced subsidies. A bipartisan healthcare proposal from January included pharmacy benefit manager reform but not the enhanced tax credit extension. In the fallout, premiums have spiked, and plan downgrades have been rampant.
In the letter, the Democratic senators encouraged more affordable coverage, smoother enrollment — through “a one-stop shop” — and wider offerings for lower-income people, including for those in states without expanded Medicaid. The legislators also called for standardization across plans to ensure easier comparisons, as well as greater exploration of “Medicare-type” healthcare options for all Americans.
The lawmakers advocated for cutting short-term, limited-duration health plans — sometimes called “junk” plans — as well as rolling back “surprise” tax bills for workers purchasing their own insurance. Health insurance corporations were another target. Senators said they want to “end the shell games Big Insurance exploits,” alluding to vertical integration with PBMs, providers and other players.
The team plans to release further details about the initiatives in the coming weeks and months, the letter said.
“We want to make sure the Senate is prepared to take action on these issues the next time Democrats have an opportunity to enact the bold, meaningful change the American people seek,” it said.
The letter builds off previous efforts targeting the health insurance industry. In February, Sens. Elizabeth Warren, D-Mass., one of the letter’s signatories, and Josh Hawley, R-Mo., introduced a bill that would crack down on vertical integration. These challenges took center stage during January House hearings that featured a handful of leading health insurance CEOs. Just a day before the March 19 letter’s release, the Republican-led House Energy and Commerce health subcommittee hosted another hearing focused on healthcare costs.
While Republicans also acknowledge affordability issues in healthcare, they have instead pointed fingers at the ACA itself. During a Nov. 19 Senate Finance Committee hearing, for example, Committee Chair Sen. Mike Crapo, R-Idaho, said the ACA “failed to make healthcare more affordable.”
