Sen. Sheldon Whitehouse, D-Rhode Island, Sen. Elissa Slotkin, D-Mich., and Congresswoman Jan Schakowsky, D-Ill., introduced a bill aimed at starting a federal public health insurance option in the ACA marketplace.
The Affordable Consumer Health Options and Insurance Competition Enhancement Act would establish a public option for 2027, according to the bill’s text. It would be available in the exchange and not through private insurers.
“This legislation is a practical, proven way to drive down premiums, increase competition, and expand access to coverage for millions of Americans and small businesses,” Ms. Schakowsky said in a news release.
The option would include bronze, silver and gold tiers. The model would rely on premiums, with adjustments by geography and a contingency margin. Negotiated provider rates would be the default, but, in the event an agreement cannot be reached, Medicare fee-for-service rates would serve as a backup.
Providers participating in Medicare and Medicaid would automatically participate, though they would be able to opt out.
The bill comes as the future of ACA subsidies remains uncertain. Democrats previously suggested a Medicare public option, and some states are already seeing traction with public options in their own insurance marketplaces, including in Nevada.
