Feds reject state’s bid to contain health costs
The feds rejected a bid this week from Gov. Charlie Baker to help deal with skyrocketing health insurance rates, and eyes will now turn to Congress for a potential vote on legislation that would offset the damage.
“We’re obviously disappointed that the feds didn’t approve the state’s waiver application,” said Eric Linzer of the Massachusetts Association of Health Plans.
“Ultimately, what this means is that it’s critical that Congress will move forward.”
The Massachusetts Health Connector filed a waiver Sept. 8 after President Trump announced an end to subsidies that would allow low-income residents cheaper coverage.
But health officials denied that request because it hadn’t been made early enough, saying in a letter to the Connector that the “waiver must be submitted sufficiently in advance of the requested effective date.”
According to Health Connector officials, another request will be made next year in hopes of a better outcome.
“In an attempt to prevent market instability and member disruption that may be caused by the federal government’s decision to end Cost Share Reductions payments, the MA Health Connector filed a 1332 waiver on September 8th, along with other requests to support Massachusetts carriers and control health care costs,” Connector officials said in a statement.
“While this waiver was not granted by the federal government, the Connector will evaluate the prospects of filing a similar waiver for 2019 and continue to talk to federal partners about other proposals,” the statement read.
But that won’t help consumers avoid high costs in the near term.
The most promising scenario is that Congress will pass bipartisan legislation that restores that funding for insurance companies.
Senate Majority Leader Mitch McConnell said over the weekend he will schedule a vote if Trump shows support for the bill.
Rates for plans on the Health Connector are predicted to increase by about 24 percent next year.