Senator Cotton, Rep. Young lead bicameral Obamacare mandate relief legislation
Senator
"Obamacare is in a death spiral. Premiums and deductibles are skyrocketing, networks are shrinking, and the entire exchange system is on the verge of collapse," said
"Obamacare mandates are squeezing middle-class Hoosiers, forcing them to absorb double-digit premium increases and penalizing those who cannot afford the high cost of health coverage," said
Background: The Relief from Obamacare Mandate Act expands an existing affordability exemption from the individual mandate to account for rising deductibles and out of pocket costs. Additionally, it creates a new exemption that suspends the individual mandate when health insurance premiums increase by more than ten percent from the previous year.
The bicameral bill provides an exemption from the individual mandate if:
1) Deductibles are "unaffordable."
* Existing law provides an affordability exemption from the individual mandate when, after subsidies, an individual would have to pay more than 8% of their household income in health insurance premiums for the lowest priced bronze plan. Currently, this affordability exemption is blind to health plan deductibles, and does not factor these out of pocket costs into the affordability determination.
* The Relief From Obamacare Mandate Act will expand the affordability exemption from the individual mandate by incorporating the maximum annual deductible into the affordability determination. This change will allow more individuals to qualify as deductibles increase across the country.
2) The state's average premium increase is more than 10%.
Read this original document at: https://toddyoung.house.gov/press-releases/senator-cotton-rep-young-lead-bicameral-obamacare-mandate-relief-legislation/
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