Rep. Schrier Introduces Bill to Create a Medicaid Public Option and Drive Down Health Care Costs

Press Release

Today Congresswoman Kim Schrier, M.D. (WA-08) and U.S. Senators Brian Schatz (D-HI) and Ben Ray Luján (D-NM) introduced a bill to expand health coverage through a Medicaid public option. The State Public Option Act would provide Americans with the choice of a high-quality, lower-cost health insurance plan.

"American families are hurting right now as they are facing high costs of health care and prescription drugs. And due to the pandemic, too many people have lost their jobs and job-related health insurance," said Rep. Schrier. "By creating a public option with an already-established program like Medicaid, this could be implemented quickly, giving relief to millions of people."

"Our bill will open up each state's Medicaid program to anyone who wants it, giving people a high-quality, low-cost public health insurance option," said Senator Schatz. "Our ultimate goal here is to make sure that every single American has comprehensive health care coverage."

While the Affordable Care Act made tremendous strides in providing health insurance for millions of Americans, nearly 30 million people are still uninsured. About 45% of adults without health coverage cite high costs as the main reason. The American Rescue Plan implemented an 8.5% cap on premiums which provides relief for families, but there is more we can do.

Medicaid has a demonstrated effectiveness and consistently gets high ratings from patients. And because it is a federal and state partnership, a public option of Medicaid would still allow for flexibility at the state level. This national bill would support Washington's statewide efforts to utilize public health plans and bring down health care costs for all Washingtonians.

Rep. Schrier continued, "This bill will open each state's Medicaid program to anyone who needs it. Adding a public option into these markets would create competition and provide for a quality, less expensive health care option that would help expand coverage to many of the families who have been priced out of health insurance."

The State Public Option Act would do several things: create a state option to expand Medicaid eligibility to all state residents not already enrolled in health insurance; improve access to quality care for Medicaid patients by incentivizing providers; and provide incentives for states to take up the Medicaid expansion.

In the House, the bill is cosponsored by U.S. Representatives Dwight Evans (D-PA), Ruben Gallego (D-AZ), Betty McCollum (D-MN), Eric Swalwell (D-CA), Peter Welch (D-VT), Steve Cohen (D-TN), Paul Tonko (D-NY), Mike Doyle (D-PA), Eleanor Holmes Norton (D-DC), Doris Matsui (D-CA), Ilhan Omar (D-MN), Gwen Moore (D-WI), Dean Phillips (D-MN) and Pete Aguilar (D-CA).

In the Senate, the legislation is cosponsored by U.S. Senators Jeanne Shaheen (D-N.H.), Elizabeth Warren (D-Mass.), Amy Klobuchar (D-Minn.), Jeff Merkley (D-Ore.), Martin Heinrich (D-N.M.), Jack Reed (D-R.I.), Tina Smith (D-Minn.), Jacky Rosen (D-Nev.), Mazie K. Hirono (D-Hawai"i), Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Ed Markey (D-Mass.), Kirsten Gillibrand (D-N.Y.), Patrick Leahy (D-Vt.), Dick Durbin (D-Ill.), Chris Murphy (D-Conn.), and Sheldon Whitehouse (D-R.I.).

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