Will the Republican Health Care Package Go Up in Flames? |
House Republican leadership wants to get its health care premium-slashing package passed this week. But will a party that has always struggled to find consensus on health care be able to get anything done?
The bill in question is the Lower Health Care Premiums for All Americans Act, a bundle of targeted tweaks to Obamacare. Increased appetite to enact legislation to lower health care costs could also lead to a second budget reconciliation process, which Republicans used to pass the “One Big, Beautiful Bill” in July.
On health care, Republicans are battling against Democrat-led efforts to extend boosted premium tax credit levels set in place under President Joe Biden. As it stands now, the GOP bill will let these enhanced credits expire at the date set by Democrats under Biden, but put in place other premium-cutting provisions.
The biggest policy change in the bill is the appropriation of Treasury funding toward cost-sharing reductions, a part of Obamacare.
In theory, CSRs involve insurers being required to offer cheaper copays and deductibles to consumers for out-of-pocket expenses, for which the federal government reimburses them.
Under President Barack Obama, funding for CSRs was originally provided directly from the executive branch to insurers, without explicit congressional approval. This practice faced a Republican-backed court challenge before finally being cut off in 2017 during President Donald Trump’s first term.
This change led to what is called “silver loading,” as insurers increased premiums on the Obamacare silver-level plan in order to make up for no longer being reimbursed for offering the legally mandated cheaper copays and deductibles.
Proponents say that renewing funding for CSRs will effectively end silver loading, thereby lowering premiums substantially.
Additionally, although counterintuitive, funding CSRs is likely to reduce the federal deficit,