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Public Statements

Two New Reports Show Repealing Health Reform Raises Health Care Costs for Seniors & Americans in Private Insurance Market, Garamendi Warns

Press Release

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Date:
Location: Washington, DC

Today, Congressman John Garamendi (D-Fairfield, CA), California's Insurance Commissioner for eight years, highlighted two new reports that show Americans would pay more if the health care law is repealed.

The first report by the Kaiser Family Foundation shows that Congressional Republican plans to repeal the Patient Protection and Affordable Care Act (ACA) would threaten the solvency of Medicare and increase health care costs for seniors. The study notes that if the Congressional Republican have their way, the Medicare Part A trust fund will fall into insolvency eight years sooner than under current law.

"Repealing the ACA is expected to increase premiums and other costs for beneficiaries over the next decade," the report notes.

Specifically, Part A deductibles and copayments would rise; Part B premiums would increase; Part D cost-sharing for prescription drugs would rise; and coverage for free preventative health screenings would be eliminated.

"Seniors deserve to know the truth: Congressional Republicans are proposing policies that will raise their prescription drug costs by thousands of dollars every year, and their ultimate goal is the elimination of the Medicare guarantee," Congressman Garamendi said. "So long as I'm in Congress, I will always fight to protect Medicare, because we all deserve to live our Golden Years with the peace of mind that comes with quality and affordable health coverage."

Since the establishment of Medicare in 1967, the senior poverty rate has dropped by two-thirds. The Ryan-Republican budget replaces Medicare with an underfunded coupon system that will cost seniors up to $11,000 a year more for prescription drug coverage and other health expenses.

Also today, Health and Human Services reported that the health care law's requirement that insurance companies spend no more than 20 percent of consumer premiums on profits and administrative costs has saved consumers an estimated $1 billion on their insurance premiums. In addition, 13 million Americans have benefited from $1.1 billion in rebates made possible by this 80/20 rate review rule. (Medicare's administrative costs are at 2%). Repealing health reform would eliminate rate review and force insurance consumers to pay more for their health care.

"The health care law established a powerful Patient's Bill of Rights," said Congressman Garamendi. "Repealing the law would turn back the clock and let insurance companies once again put profit over people."


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