Donnelly Urges Market Stability on Health Care; Association Plans in the Offing?


Senator Joe Donnelly is urging the Trump administration to make a public commitment to continue cost sharing reduction (CSR) payments, which lower consumers’ deductibles and co-pays.

Early in the week, Donnelly continued his push for stability in the insurance markets in a letter to Hoosier Seema Verma – the administrator of the Centers for Medicare and Medicaid Services (CMS) – who he partnered with to help establish Indiana’s bipartisan Healthy Indiana Plan (HIP) 2.0 program through the Affordable Care Act. Donnelly’s letter comes as President Trump has declined to commit to continue making CSR payments. Donnelly says if these aren’t maintained, it could cause people to pay at least 15-20% more for health care.

In the letter to Verma, Donnelly wrote: “…It is our job to protect American families from unnecessary increases in the cost of health care, particularly those within our control. That is why I am very concerned by recent comments and actions made by the administration demonstrating a willingness and desire to undermine the health care system, even at the expense of the health and economic security of millions of Americans. These efforts to create uncertainty are harming working people and are already having a detrimental effect in Indiana.

“As we work to improve our health care system, we must first do no harm … The administration has the ability to help provide market stability today, and I respectfully request that the administration make a strong public commitment to continuing the CSR payments so that Congress can work together in a bipartisan fashion in an effort to reduce costs, expand access and strengthen the American health care system.”

Additionally, Donnelly said he’s recently heard from several insurance companies which provide coverage to Hoosiers – including two that have recently left the market – that cited lack of certainty, particularly as it relates to the CSR payments, as a key reason for increasing prices or leaving the market.

White House Press Secretary Sarah Huckabee Sanders said this week that CSR payments were, at this point, bailing out a failed law. She also said no final decision had been made by the President on continuing them.

Read Donnelly’s full letter to Verma.

Meanwhile, Sen. Rand Paul of Kentucky is making a case to President Trump to use his executive authority to permit associations and organizations to offer group health insurance plans. Paul says this could impact tens of millions currently in the individual marketplace. The White House has yet to comment on the possibility. This action would be very helpful to Indiana Chamber members and we have previously discussed this positive policy proposal with members of the Indiana delegation.

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