Rep. DeSaulnier Introduces Legislation to Make Health Insurance Affordable for Middle Class Families

WASHINGTON, March 19 -- Rep. Mark DeSaulnier, D-California, issued the following news release:

Today, Congressman Mark DeSaulnier (CA-11) introduced legislation that would make health insurance more affordable for middle class families. While the vast majority of people get assistance with their health care costs, more than 20 million Americans purchase health insurance through the individual marketplace many without assistance, often leaving them with outrageously high premiums. The Affordable Health Insurance for the Middle Class Act (H.R. 5258) would help ensure all Americans have access to coverage by eliminating the income cap on receiving subsidies to help pay for health premiums. Under this bill, no individual or family would have to pay more than 9.69 percent of their monthly income toward health insurance premiums. Senator Dianne Feinstein introduced companion legislation to H.R. 5258 in the U.S. Senate.

"Health insurance premiums are expected to skyrocket by 35 to 94 percent in the next three years, due in large part to the Trump Administration's efforts to undermine the ACA, and the current income cap prevents many middle class individuals and families from receiving the help they need to purchase insurance. I am lucky to be a survivor of cancer, and fortunate to have purchased Contra Costa Health Plan insurance or the expense of treatment could have bankrupted me," said Congressman DeSaulnier. "This bill would provide assistance to families to help them balance the costs of health care with their other expenses - many of which are exponentially higher in the Bay Area than in the rest of the country."

"Democrats want to make the Affordable Care Act work better for families nationwide by addressing affordability issues within the individual market. One solution is our bill to eliminate the sharp cut-off for tax-credit subsidies that blocks middle-class families from receiving financial help. The Commonwealth Fund has analyzed this change and the benefits are clear--1.2 million people would gain coverage, premiums overall would decrease and the individual market would have a better balance of healthy and sick enrollees. Importantly, 400,000 people who are insured, but may be struggling to pay their premiums will also gain access to tax-credit subsidies. Older Americans between ages 50-64 would see the greatest benefit because they pay up to three times more for insurance. It's estimated that 96 percent of the newly insured would be in this age group. Expanding eligibility for tax-credit subsidies would partially pay for itself. By attracting healthier people to the market and lowering premiums, the federal government would spend less on tax-credit subsidies for those who already receive them," said Senator Feinstein.

Under current law, individuals and families making even one dollar more than the $48,560 limit for an individual or $83,120 limit for a family of three are not eligible to receive federal assistance to buy health insurance on the individual market. The Affordable Health Insurance for Middle Class Act would address gaps in affordability and would provide critical protections for Americans, particularly those aged 50 to 64 who are often subject to higher premiums but are not yet eligible for Medicare.

The companion legislation, S. 1307, was introduced by Senators Dianne Feinstein (D-Calif.) as well as Patrick Leahy (D-Vt.), Elizabeth Warren (D-Mass.), Tammy Baldwin (D-Wis.), Kamala Harris (D-Calif.) and Maggie Hassan (D-N.H.).

The complete list of supporting organizations includes: American Academy of Pediatrics, American Association of Neurological Surgeons (AANS); Child Welfare League of America; Congress of Neurological Surgeons (CNS; Consumers Union; Families USA; Lung Cancer Alliance; National Farmers Union; The Children's Health Fund; Third Way.