Rep. Grothman Concerned about Effect of Obamacare Replacement Draft on Employer-Sponsored Coverage

WASHINGTON, March 2 -- Rep. Glenn Grothman, R-Wis., issued the following news release:

Congressman Glenn Grothman (R-Glenbeulah) today reaffirmed his desire to repeal and replace Obamacare. However, upon reviewing the initial replacement draft and the universal health care tax credit, Grothman expressed some concerns about the potential replacement's effect on employer-sponsored coverage.

"The so-called Affordable Care Act has caused $1 trillion in new taxes on everything from life-saving medical devices to health insurance plans and $53 billion worth of new regulations while premiums have soared - an average of 25 percent nationally and 16 percent in Wisconsin," said Grothman. "Obamacare has also created a disincentive to work. It penalizes those workers whose incomes rise by hitting them with rising healthcare costs.

"We know that Obamacare is a disaster and Americans, faced with skyrocketing premiums and limited choice, need relief. We must be sure that we are not continuing the pattern of creating disincentives to work in our replacement plan.

"Currently, employer-sponsored coverage is about 46 percent of the insurance marketplace. As drafted, the current replacement plan could result in even less people on employer plans than under Obamacare - with the credits possibly creating an incentive for employers to drop coverage. We must be sure to cover individuals with pre-existing conditions, but the movement of people into high-risk pools puts an additional strain on employers, since they will be required to cover both high-risk and low-risk employees. We must focus on enhancing the ability of employers to innovate and make their own decisions on the best health care options for their employees.

"I applaud President Trump and Republican leadership for working towards repealing Obamacare, and I look forward to assisting employers as we work towards the final draft."