Jones says CBO report confirms dire consequences from Republican repeal effort
News: 2017 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones issued the following statement in response to CBO report findings on Republican effort to destabilize health insurance market:
“The CBO report confirms that the Senate ACA repeal bill would devastate the lives of 17 million Americans when it causes them to lose their health insurance a few short months from now. Those who find a way to hold on to their coverage can expect 25 percent rate increases next year. The dire consequences of ACA repeal for Americans will get even worse by 2020 when 27 million people will lose their health insurance coverage, increasing to 32 million people by 2026.
Americans want affordable premiums and to know that their health insurance will cover their costs when they need care. Regardless of what strong-arming President Trump and Congressional leaders may be engaged in, it is the public, the overwhelming majority of whom oppose the repeal of the ACA, whose health and financial security must be our primary concern.
The uncertainty created by Trump and the Republican leaders of Congress and their refusal to fund and enforce the ACA is bringing us close to the point of no return when it comes to significant rate increases for 2018 and the potential threat of insurers withdrawing from the market. As the insurance regulator of the largest insurance market in the country my message is simple – do your jobs and pass a bill to fund the cost-sharing reductions in the ACA that will stabilize the market and stop working on new ways to deny Americans health care coverage.”
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The Congressional Budget Office (CBO) and Joint Committee on Taxation estimate that enacting the legislation would affect insurance coverage and premiums primarily in these ways:
- The number of people who are uninsured would increase by 17 million in 2018, compared with the number under current law. That number would increase to 27 million in 2020, after the elimination of the ACA’s expansion of eligibility for Medicaid and the elimination of subsidies for insurance purchased through the marketplaces established by the ACA, and then to 32 million in 2026.
- Average premiums in the nongroup market (for individual policies purchased through the exchanges or directly from insurers) would increase by roughly 25 percent—relative to projections under current law—in 2018. The increase would reach about 50 percent in 2020, and premiums would about double by 2026.
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.