Murphy Votes To Prevent Further CO-OP Calamity

Representative Tim Murphy

Murphy Votes To Prevent Further CO-OP Calamity

H.R. 954 exempts Affordable Care Act CO-OP customers from fines, prevents tax penalties

September 27, 2016

Contact: Carly Atchison 202.225.2301

Washington, D.C. - In his continued effort to protect individuals from the failures of the Affordable Care Act (ACA), today Congressman Tim Murphy (PA-18) supported, and the House of Representatives passed H.R. 954, the Consumer Operated and Oriented Plan (CO-OP) Consumer Protection Act.

Under the ACA, all ''applicable individuals'' must have a ''minimum essential coverage'' for themselves and their dependents or pay a tax penalty. H.R. 954 provides temporary relief from the ACA's mandated tax penalty for approximately 725,000 Americans whose CO-OP funded coverage was terminated or otherwise discontinued.

"Forcing Americans to pay a tax penalty due to the Administration's failed policies is unjust and unfair. The thousands of Americans dumped from their healthcare plans and left without any coverage deserve a break. H.R. 954 delivers these families much-needed relief," said Congressman Murphy.

In 2015, as Chairman of the House Energy and Commerce's Oversights and Investigation subcommittee, Murphy led an investigation into the ACA's failed CO-OP programs. The findings of the investigation revealed insolvency, careless management, and billions in wasted federal funds.

Murphy continued: "Ultimately, what we are seeing is the Affordable Care Act failing the American people. The objective of the law was to provide health insurance to those who could not afford it, yet the ACA is accomplishing just the opposite. Not only have the failed CO-OPs cost Americans $1.8 billion in taxes, but they've uprooted thousands of families from their plans."

The Joint Committee on Taxation estimates that about 725,000 individuals purchased insurance from one of the failed or failing CO-OPs. To date, a total of 17 out of the original 23 CO-OPs have failed, leaving only six remaining. The CO-OP programs were created in an attempt to artificially create competition in the health care market.

Murphy Press

Congressman Tim Murphy (PA-18)

2332 Rayburn House Office Building

Washington, DC 20515

(202) 225-2301