WASHINGTON, D.C. – Today, Rep. Doris Matsui (CA-06), Rep. Cindy Axne (IA-03) and Rep. Steven Horsford (NV-04), introduced legislation to reduce out-of-pocket health care costs by reversing an administration rule that makes fewer Americans eligible for health care premium tax credits. The rule, which was finalized in April 2019, will cost impacted families up to $400 more per year in out-of-pocket costs, and is projected to result in higher premiums for at least 7.3 million Americans.
The administration changed the formula that calculates eligibility for Affordable Care Act (ACA) premium tax credits and out-of-pocket cost limits. For 2020, this rule change has increased the maximum limit by 2.5 percent, resulting in an annual increase of $200 for individuals and $400 for families.
The Fair Indexing for Health Care Affordability Act would reverse the administration’s change to how out-of-pocket limits and tax credit indexing are calculated, and stabilize ACA marketplaces by protecting at least 7.3 million Americans from paying higher premiums.
“American families continue to take the brunt of the Trump Administration’s assault on the Affordable Care Act. The Administration’s change to the eligibility for vital ACA premium tax credits is yet another sabotage effort that reduces access to affordable care,” said Congresswoman Matsui, a senior member of the House Energy and Commerce Committee. “The Fair Indexing for Health Care Affordability Act would invalidate this harmful regulation, reducing out-of-pockets costs and putting health care back within reach for our working-class Americans. I will continue to work towards solutions that make health care more accessible for everyone and stem the rising tide of health care costs to protect our families.”
“There is no reason to raise premiums and out-of-pocket costs, and this legislation would stop Iowans from having to pay even more for their care,” said Congresswoman Axne. “This legislation will protect our insurance marketplaces, restore tax credits to families, and provide more certainty to Iowans budgeting for their health care.”
“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. “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.”
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