New Dem Rep. Colleen Hanabusa Joins New Dem Coalition Chair Jim Himes in Criticizing Trump's Cutting Off Cost Lowering Payments

Press Release

Rep. Hanabusa (HI-01), a member of The New Democrat Coalition, joined The New Democrat Coalition Chair, Rep. Jim Himes (CT-04), in releasing this statement after the White House Press Secretary issued a statement indicating that the Trump Administration will end cost-sharing reduction payments.

The Affordable Care Act (ACA) cost-sharing reduction payments ("CSR") are designed to reduce out-of-pocket costs for low-income Americans. Ending CSR payments are expected to hike exchange-plan premiums an average of 20 percent. This is the latest, and most harmful, in a laundry list of actions by President Trump to undermine the ACA. Previously, President Trump slashed Health and Human Service's outreach and marketing budget by 90 percent, cut the open enrollment period in half and ordered a shutdown of the enrollment website for 12 hours on Sundays throughout open enrollment.

"Today, President Trump took steps to sabotage the ACA despite warnings from industry and health care experts that cutting cost-sharing reduction payments will hurt ACA-dependent families and individuals and destabilize the healthcare insurance marketplace," said Rep. Colleen Hanabusa. "Frustrated by his inability to repeal Obamacare through Congress, President Trump struck out at Obamacare enrollees today by cutting off funds that lower their premiums. If punishing those most vulnerable in our society is how President Trump starts negotiations with Congress, he has not only misjudged Congress, but the people of this great country."

"President Trump's decision to end the payments that are vital to the functioning of the ACA marketplaces is a malicious act of destruction," said Rep. Himes. "I hope he will see the error of his ways and quickly reverse course. If he does not, Congress should act immediately to enshrine these payments into law and work toward bipartisan, bicameral solutions to stabilize the marketplace and actually work for the health and benefit of the American people. The agreement being negotiated by Senators Alexander and Murray would be a good place to start to plug the hole and ensure people don't start to die because of the administration's actions."

Earlier this year the New Democrat Coalition, along with other House Democrats, put forward a proposal to improve the Affordable Care Act (ACA). The New Dem-led set of proposals to stabilize the market and make health care more affordable for American families:

Guaranteed cost-sharing payments to reduce out-of-pocket costs
Dedicated reinsurance funds to keep premium costs down
Increased insurance coverage through outreach and enforcement
Additional flexibility to create more affordable insurance options while protecting consumers
Marketplace improvements and technical changes
In recent months, bipartisan support had grown on the need to improve the ACA individual marketplaces to provide certainty and limit premium increases. Now, more than ever, the Senate HELP Committee must take on a bipartisan approach that paves the way to address long-term stability and predictability to the individual market.

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