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Former Medicare administrator says DOJ action could end guaranteed health coverage

Herald Bulletin - 6/15/2018

June 15--ANDERSON -- The former administrator for the Centers of Medicare and Medicaid Services believes insurance coverage for people with pre-existing medical conditions is under attack.

Andy Slavitt said Thursday during a conference call with Indiana reporters that an action by the U.S. Department of Justice could end the guaranteed coverage provided through the Affordable Care Act.

A federal lawsuit was filed earlier this year by Texas and other states asking a federal judge to declare the Affordable Care Act unconstitutional because the tax reform bill eliminated the individual mandate for insurance coverage.

The Department of Justice responded to the lawsuit on June 7 in a brief agreeing with Texas that the tax bill had made the individual mandate unconstitutional, but contended that unconstitutionality only invalidated the ACA's "guaranteed-issue and community-rating provisions," and not the rest of the ACA. These provisions require that insurers offer coverage to all applicants at the same premium regardless of pre-existing conditions.

Rep. Susan Brooks, R-5th District, has said that any reform of the Affordable Care Act should include health insurance coverage for people with pre-existing conditions.

"While Congress specifically repealed the individual mandate penalty, there was no discussion regarding eliminating protections for those with pre-existing conditions," Brooks said Thursday. "I remain committed to making sure that individuals with pre-existing conditions have access to quality and affordable health care."

Slavitt said it would be illegal to require insurance companies to cover pre-existing conditions when providing health insurance at similar rates.

"This is a political move," he said. "Thirty percent of Hoosiers under the age of 65 have pre-existing conditions. There will no longer be an obligation for insurance companies to provide coverage or it will prevent people from changing jobs."

Slavitt said a majority of Americans believe a person should be able to purchase insurance regardless of pre-existing conditions.

"This is a gift of the (President Donald) Trump administration to insurance companies," he said. "It allows companies to raise rates at the expense of average Hoosiers."

Slavitt noted that in the first 50 votes by the Republicans in Congress to repeal the Affordable Care Act, there was no effort to remove coverage for pre-existing conditions.

"This appears to be the official position of the Republican Party," he said. "This is a very significant challenge."

The case will eventually be decided in the U.S. Supreme Court, Slavitt said.

"Any time the Republicans want to guarantee access to care for people if they have pre-existing conditions, they can do it," he said.

Slavitt said removing the individual mandate requirement for people to have health insurance through the Affordable Care Act will result in higher premiums.

He estimated the increase at 10 percent or more starting in January.

Slavitt said other "junk" insurance policies will be offered that won't cover mental health, prescription drugs and pre-existing conditions.

"Carriers will be able to offer insurance coverage that doesn't meet the requirements of the Affordable Care Act," he said. "The insurance costs will be much higher than they need to be."

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 640-4863.

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(c)2018 The Herald Bulletin (Anderson, Ind.)

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