WASHINGTON, DC - The Subcommittee on Health, chaired by Rep. Joseph Pitts (R-PA), and the Subcommittee on Oversight and Investigations, chaired by Rep. Tim Murphy (R-PA), today held a joint hearing examining the state of Obamacare. Six years after the president signed Obamacare and three years since the law was enacted, patients sadly continue to experience fewer plan choices and face higher premium costs.
Earlier this week, the committee’s majority staff released two reports chronicling some of the health law’s greatest weaknesses: its unstable exchanges, and the collapsing CO-OPs. The nonpartisan Government Accountability Office also released their undercover marketplace reports for the 2015 and 2016 benefit years this week, which concluded the marketplaces “remain vulnerable to fraud."
Chairman Murphy commented on the HHS OIG report that found the majority of remaining CO-OPs are on track to becoming insolvent because they have not met the minimum CMS requirements for risk-based capital. “This will result in the loss of even more taxpayer money and leave hundreds of thousands of Americans displaced without insurance coverage," said Chairman Murphy.
Rep. Morgan Griffith (R-VA) posed questions about a recent memo from CMS regarding the risk corridor program and outstanding payments. Rep. Griffith asked CMS Acting Administrator Andy Slavitt, “Does CMS take the position that the insurance plans are entitled to be made whole on risk corridor payments even though there’s no appropriation to do so?" Acting Administrator Slavitt replied by answering, “Yes, it is an obligation of the federal government."
Chairman Pitts followed up on the risk corridor program and the memo from last week, asking Acting Administrator Slavitt how they plan to make insurers whole under the obligations of the program. Acting Administrator Slavitt could not clarify his earlier testimony, saying, “I can’t speak to that directly today." Additionally, Acting Administrator Slavitt failed to identify a specific appropriation for such risk corridor payments to insurers.
Rep. Chris Collins (R-NY) spoke to New York’s state exchange and massive rate hikes for the upcoming year, as well as its now failed CO-OP. Rep. Collins stated, “I don’t think the president, I don’t think anyone at CMS ever will acknowledge what Western New Yorkers are living day to day. And that is, the Affordable Care Act - Obamacare - is fundamentally flawed, can’t be fixed, and is imposing unsustainable ever-increasing costs on Americans."
Members also highlighted the House Republican’s #BetterWay on health care. Full committee Chairman Fred Upton (R-MI) commented, “House Republicans have offered a better way to help patients get - and keep - health coverage. Our solutions put patients first, improve the quality of care, lower health care costs, and restore freedom and flexibility. It also keeps patients on their parents insurance until they are 26 years old, and will not deny coverage based on pre-existing conditions. We want to lead the world in cures and treatments, and our plan builds upon the important work outlined in the 21st Century Cures Act to help deliver cures now."
See Also
* The Affordable Care Act on Shaky Ground: Outlook and Oversight
