WASHINGTON, D.C. (WHSV/Office of Mark Warner Press Release) — Senator Mark Warner announced the Health Care Improvement Act of 2021 on Thursday to help counter the effects the health and economic crisis caused by the coronavirus pandemic has had on the number of people lacking insurance across the county.
According to a press release from Warner’s office, the bill specifically aims to protect health care coverage for Americans living with preexisting conditions while also expanding access to quality and affordable health care coverage for working families.
The press release says, “In line with the forthcoming announcement by the Biden administration, Sen. Warner’s Health Care Improvement Act provides $100,000,000 in funding to support the administration’s effort to fully fund programs to help more Americans enroll in affordable health care coverage.”
Per the press release, the Health Care Improvement Act of 2021 would lower costs for working families by:
- Capping health care costs on the ACA exchanges: The Health Care Improvement Act of 2021 will ensure no individual or family pays more than 8.5 percent of their total household income for their health insurance. Currently, no family making more than 400 percent of the federal poverty line ($51,040 for an individual in 2020) is eligible for premium assistance on the ACA exchanges. This provision – which is supported in President Biden’s American Rescue Plan – expands premium assistance to individuals making more than 400 percent of the federal poverty line and places a cap on insurance costs for all individuals and families on the ACA exchanges.
- Establishing a low-cost public health care option: The Health Care Improvement Act of 2021 will also require the Secretary of Health and Human Services to create a low-cost, public health care option for individuals who are eligible to enroll for health care coverage via the ACA exchanges. Establishing a public health care option will increase competition and ensure an added lower cost health care option for more American families.
- Authorizing the federal government to negotiate prescription drug prices: Under existing federal law, the government is explicitly banned from negotiating with pharmaceutical companies for lower drug prices. The Health Care Improvement Act of 2021 will allow the federal government to leverage its purchasing power to negotiate prices and reduce drug costs for more than 37 million seniors on Medicare.
- Allowing insurers to offer health care coverage across state boundaries: The Health Care Improvement Act of 2021 will allow insurers to offer health care coverage across state boundaries, increasing choice and competition among plans and driving down costs while maintaining quality, value and strong consumer protections.
- Supporting state-run reinsurance programs: The Health Care Improvement Act of 2021 will create a new “State Health Insurance Affordability and Innovation Fund” to support state run reinsurance programs and additional state efforts to reduce premium costs and expand health care coverage. The non-partisan Congressional Budget Office has previously estimated such programs could reduce health care premiums by 8 percent within one year.
Per the press release, the Health Care Improvement Act of 2021 will increase access to affordable health care coverage by:
- Incentivizing states to expand Medicaid: If all states were to expand their Medicaid programs, the number of uninsured Americans would decrease by more than 2 million. The Health Care Improvement Act of 2021 will provide additional incentive to states to expand their Medicaid program by temporarily increasing federal matching funds to states that expand their programs and reducing existing administrative payments to states that do not expand their programs. It would also provide retroactive payments to states like Virginia that were late to expand Medicaid and have not received their fair share of federal matching payments.
- Expanding Medicaid eligibility for new moms: The Health Care Improvement Act of 2021 will allow states to provide new mothers up to 12 months of postpartum Medicaid eligibility. This provision would significantly improve maternal health outcomes by ensuring mothers have access to vital health care services during the immediate months after giving birth.
- Simplifying enrollment: There are over 7 million Americans currently eligible for cost-free Medicaid coverage, but who are not enrolled due a variety of factors including unnecessary paperwork and a confusing enrollment process. The Health Care Improvement Act of 2021 will simplify Medicaid and CHIP enrollment by permanently authorizing the successful Medicaid Express Lane Eligibility program and expanding it to include adults. The Department of Health and Human Services will also be required to conduct a study and develop recommendations to allow states to further implement Medicaid and CHIP auto-enrollment for individuals eligible for cost-free coverage.
- Increasing Medicaid funding for states with high levels of unemployment: The Health Care Improvement Act of 2021 will implement a counter-cyclical Medicaid matching payment from the federal government to ensure that states with high levels of unemployment receive a higher federal matching payment to appropriately account for an increase in Medicaid enrollment. This will ensure states can maintain affordable health care coverage during economic downturns and temporary periods of high unemployment.
- Funding rural health care providers: Under current law, rural providers are unfairly compensated at a much lower rate than urban providers, making it more difficult for Virginia providers to keep their doors open in underserved communities. The Health Care Improvement Act of 2021 will create a rural floor for the Area Wage Index formula the Centers for Medicare and Medicaid use to reimburse rural providers. Fixing the Area Wage Index will boost access to affordable health care coverage in Virginia’s rural and medically underserved communities.
- Reducing burdens on small businesses: The Health Care Improvement Act of 2021 will modernize ACA employer reporting requirements to ensure that businesses can provide comprehensive health care benefits to their employees without additional administrative costs or unnecessary paperwork.
To read the full press release and bill, click here.