McEachin and Baldwin Re-Introduce Legislation to Make Healthcare More Affordable for Young Adults

WASHINGTON, Oct. 30 -- Rep. A. Donald McEachin, D-Virginia, issued the following news release:

In advance of the beginning of the 2020 Affordable Care Act (ACA) open enrollment period, Congressman A. Donald McEachin (VA-04) re-introduced the Advancing Youth Enrollment (AYE) Act to help more young Americans afford healthcare by increasing tax credits and, thereby, reducing coverage costs. Senator Tammy Baldwin (D-WI) introduced the Senate companion.

"It is imperative that young Americans have affordable, comprehensive healthcare," said Congressman McEachin. "Between soaring housing costs, crushing student debt, and job insecurity, young people often have a hard time affording adequate health insurance. I am re-introducing the AYE Act with Senator Baldwin to reduce healthcare costs so that millions more Americans, including individuals with chronic and pre-existing conditions, will be able to afford the high-quality healthcare plans they need. By incentivizing young adults to participate in the individual marketplace, the AYE Act will not only get more young people covered, but also help older enrollees by stabilizing the marketplaces and reducing premiums for everyone."

"More Americans are uninsured today than when President Trump took office and his administration continues to make it harder for people to get the quality, affordable health care coverage they need. My legislation will help reduce health insurance premiums and out-of-pocket costs for young adults and make it easier for them to get quality, affordable health care coverage," said Senator Baldwin. "As Americans begin signing up for quality health care coverage this week through the Affordable Care Act, we can do more to expand access and lower costs. Making health care more affordable for younger adults with targeted tax credits can help ensure that they sign up for quality coverage, which will help strengthen the Marketplace and help lower costs for all."

"Every day, we hear from young people who understand the importance of getting covered to protect themselves and their health, but are struggling to make ends meet. We know that young people are uninsured at higher rates, have lower incomes, and tend to struggle with navigating the complexities of health insurance more than their older counterparts. By making coverage even more affordable for young people, we can improve coverage rates and affordability for the nation's most uninsured age group. By bringing more young people into the individual market, the AYE Act is a smart solution to improving affordability, and strengthening the ACA for everyone," said Erin Hemlin, Health Policy and Advocacy Director, Young Invincibles.

"The Advancing Youth Enrollment (AYE) Act is smart, badly needed legislation that will help young adults afford the health coverage they need, especially during the crucial years when they are starting families," said Kristin Rowe-Finkbeiner, executive director and CEO of MomsRising, the online and on-the-ground organization of more than one million mothers and their families. "When adults have health insurance, they can more easily get the preventive, routine and other care they need, which helps them to better care for their children. It is deeply concerning that in both 2017 and 2018, the rate of young adults without health insurance increased. The AYE Act can help reverse that by making health insurance plans more affordable for young people, many of whom are just joining the workforce, have low incomes, and are starting families. We commend Sen. Tammy Baldwin (D-WI) and Rep. Donald McEachin (D-VA) for introducing and championing this bill."

All Americans who buy coverage through an ACA marketplace would ultimately benefit from the AYE Act. This bill would strengthen premium assistance tax credits under the ACA to reduce healthcare costs for Americans under 35, enabling more young people to get covered. Current law caps premiums, as a percentage of income, for low- and middle-income families and individuals who buy health insurance plans through an ACA exchange. The AYE Act would lower those caps by an additional 2.5 percent for those under the age of 30; that reduction would be phased out in 0.5 percent annual increments for those aged 31-34.

With year-after-year increases in marketplace premiums around the country--thanks in large part due to the Trump Administration's cutting ACA enrollment outreach, shrinking the enrollment window, and repeal of the individual mandate--the AYE Act would help stabilize the marketplace and decrease premiums for everyone.

Support for the legislation includes Young Invincibles, Shriver Center on Poverty Law, MomsRising, Community Catalyst, ACA Consumer Advocacy, Out2Enroll, GLMA: Health Professionals Advancing LGBTQ Equality, Asian & Pacific Islander American Health Forum, NAMI (National Alliance on Mental Illness) Texas, the Hemophilia Federation of America, Black Women's Health Imperative, National Council of Jewish Women, Center for Public Policy Priorities, and ACASignups.net.

Full bill text can be found here (https://mceachin.house.gov/sites/mceachin.house.gov/files/documents/AYE%20Act%202019.pdf).

Background:

The changes proposed by the AYE Act would:

- Make healthcare more affordable and accessible for nearly 6 million uninsured young adults;

- Reduce premiums for young people who already have coverage through a marketplace by, on average, $650 per year for a silver plan; and

- Improve risk pools by increasing the number of young and healthy enrollees, thus helping to stabilize marketplaces and hold down premiums for all enrollees.