WASHINGTON, D.C. – Today, Representatives Doris Matsui (CA-6), Steven Horsford (NV-4), and Jeff Van Drew (NJ-2) introduced the Fair Indexing for Health Care Affordability Act. This bill reverses the Trump Administration’s efforts to raise health care costs on working families through a reformulation of how we determine the Affordable Care Act’s (ACA) premium tax credit and out-of-pocket cost limits. The Fair Indexing for Health Care Affordability Act will reduce out-of-pocket costs for qualifying families, increase eligibility for premium tax credits, and help further stabilize the health insurance individual market.
“Premium tax credits are a vital tool in reducing out-of-pocket costs and making plans more affordable for low-income and working-class Americans. When the Administration announced that it would be recalculating its benefit formula, it deliberately chose to raise out-of-pocket expenses on families who are already squeezed by rising costs – another in a long line of ACA sabotage efforts,” said Congresswoman Matsui, a senior member of the House Energy and Commerce Committee. “By reversing this regulation, we can take meaningful steps toward stabilizing our health system, easing the burden on consumers, and protecting middle-class families.”
“While the Democratic majority continues to fight to lower health care costs for Americans across the country, we are simultaneously tasked with protecting American families from harmful policies put in place by the current administration. In this case, we are fighting against a biased policy that hurts families accessing their health care through the Affordable Care Act,” said Congressman Horsford, member of the House Ways and Means Committee.
“The Fair Indexing for Health Care Act would save families in my district, and across the country, from unjust out-of-pocket charges on their health care purchased under the Affordable Care Act. No parent or individual should bear the burden of unfair tax policies or increased out-of-pocket limits on their care, and I am proud to sponsor legislation that protects access to affordable health care,” added Horsford.
“The Fair Indexing for Health Care Affordability Act is a simple, common-sense solution that will protect costs and make health care more accessible for South Jersey individuals and families,” said Congressman Van Drew. “We should be working on solutions to lower out-of-pocket expenses, not increase them.”
In April 2019, the Trump Administration reformulated the index and eligibility for the ACA’s premium tax credits and maximum out-of-pocket limits. This change resulted in a 2.5 percent increase in the maximum out-of-pocket limit for 2020 compared to the previous year. This change will result in a $200 increase in the cap on out-of-pocket costs for individuals and a $400 per year increase for families.
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