Insurance Commissioner condemns Trump Administration actions destabilizing health insurance markets
News: 2017 Press Release
SACRAMENTO, Calif. — In an interview yesterday with the Wall Street Journal, President Trump suggested an intention to hold hostage the cost-sharing subsidies that make it possible for low-income Americans to afford to seek medical care when they need it. Responding to these comments, Insurance Commissioner Jones said: "The cost-sharing subsidies, an important part of the Affordable Care Act, lower deductibles and other out-of-pocket costs to make healthcare more affordable. President Trump's threats to withhold the cost-sharing assistance create fear among consumers and instability in the health insurance market. President Trump's stated intention to hold hostage for political gain the healthcare of millions of Americans who rely on cost-sharing assistance is outrageous. We can expect rates to increase and insurers to leave the market because of President Trump's actions undermining the Affordable Care Act."
Today,the Trump Administration took additional steps to destabilize the health insurance market. The misnamed "market stabilization" rules sabotage the Affordable Care Act by significantly reducing the open enrollment time period and creating other conflicts with state laws. Like President Trump's threats to eliminate cost-sharing subsidies, his new regulations will destabilize, rather than strengthen, the health insurance market.
The California Department of Insurance provided the U.S. Department of Health and Human Services (HHS) with comments when the rule was first proposed. In spite of these warnings, however, the rule issued by the Trump Administration:
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.