SBE Council Supports H.R. 2995 to Keep Health Coverage Affordable

By SBE Council at 2 August, 2013, 6:47 am

H.R. 2995 Repeals ACA’s Statutory and Restrictive Cap on Deductibles in the Small Group Market

Congressman Tom Reed

1504 Longworth House Office Building

Washington, D.C. 20515

Congressman Mike Thompson

231 Cannon House Office Building

Washington, D.C. 20515

Congressman Pat Tiberi

106 Cannon House Office Building

Washington, D.C. 20515

Dear Congressmen Reed, Thompson and Tiberi:

The undersigned organizations are writing to express our thanks and support for H.R. 2995, your bipartisan bill to repeal the statutory cap on deductibles for health plans in the small group market.

The Affordable Care Act caps the maximum deductible for small group health plans at $2,000 for individuals and $4,000 for families. This limit applies only to small employers, driving up their health costs relative to those of large employers and individuals. Imposition of the ACA’s inflexible deductible caps would force a majority of today’s small group plans to put consumers through significant and often premium-boosting plan re-designs. Only about a third of today’s small group customers choose plans with deductibles lower than the ACA’s caps– meaning that the remaining two-thirds would be forced to raise premiums, increase copays, or strip benefits to comply with the cap.

The Department of Health and Human Services (HHS) recognizes that the deductible cap is as unworkable as it is unfair. Pursuant to the final rule on Essential Health Benefits, HHS will allow plans to exceed the statutory cap when there is no other reasonable way to provide an actuarial value at a given tier of coverage. This waiver applies only for three years, however, and may be amended or rescinded at any time.

Your bill would provide permanent statutory relief, giving small businesses and insurers certainty that they will continue to have the flexibility to provide the more affordable plans so many of their employees and customers demand. The bill would spare millions of consumers unnecessary plan disruptions and premium hikes while leaving intact the basic structure and mission of the ACA. In fact, enrollment in small group bronze plans would be 17 percent higher without an ACA deductible cap than if one were in place, according to a study from health analytics firm Avalere.

Statutory removal of the deductible cap provision in the small group market would formalize a direction that HHS has already endorsed, while giving plans and consumers the certainty they will need to sustain a robust market for bronze-level plans.

We appreciate your leadership on this important issue for small business and their employees, and look forward to working with you and your colleagues in enacting this bipartisan legislation this year.

Sincerely,

Associated Builders and Contractors

Communicating for America

Council for Affordable Health Coverage

Evolution 1

Healthcare Leadership Council

National Association for the Self-Employed

National Association of Health Underwriters

National Association of Manufacturers

National Association of Wholesaler-Distributors

National Retail Federation

Small Business & Entrepreneurship Council