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Major health insurers say bare-bones policies a nonstarter

Sen. Ted Cruz, R-Texas, supports letting insurers offer low-cost policies with skimpy coverage that he says would drive down premiums and let people buy the coverage they feel they need.

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Sen. Ted Cruz, R-Texas, supports letting insurers offer low-cost policies with skimpy coverage that he says would drive down premiums and let people buy the coverage they feel they need.

WASHINGTON — Two of the insurance industry's most powerful organizations say a crucial provision in the Senate Republican health care bill allowing the sale of bare-bones policies is "unworkable in any form," delivering a blow to party leaders' efforts to win support for their legislation.

The language was crafted by conservative Sen. Ted Cruz, R-Texas, and leaders have included it in the overall bill in hopes of winning votes from other congressional conservatives. But moderates have worried it will cause people with serious illnesses to lose coverage, and some conservatives say it doesn't go far enough.

Two of the 52 GOP senators have already said they will oppose the legislation. Senate Majority Leader Mitch McConnell cannot lose any others for the legislation to survive a showdown vote expected next week.

But Sen. John McCain's absence from the Senate next week as he recovers from surgery for a blood clot could complicate the GOP's prospects for advancing the legislation.

Surgeons in Phoenix removed a blood clot from above McCain's left eye on Friday. The 80-year-old Senate veteran was advised by doctors to remain in Arizona next week, his office said in a statement Saturday.

McConnell said late Saturday that he's deferring consideration of the measure.

The overall measure represents the Senate GOP's attempt to deliver on the party's promise to repeal President Barack Obama's health care law, which they've been pledging to do since its 2010 enactment.

The criticism of Cruz's provision was lodged in a rare joint statement by America's Health Care Plans and the BlueCross BlueShield Association. The two groups released it late Friday in the form of a letter to McConnell, R-Ky.

"It is simply unworkable in any form," the letter said. They said it would "undermine protections for those with pre-existing medical conditions," increase premiums and lead many to lose coverage.

The provision would let insurers sell low-cost policies with skimpy coverage, as long as they also sell policies that meet a stringent list of services they're required to provide under Obama's law, like mental health counseling and prescription drugs.

Cruz says the proposal would drive down premiums and give people the option of buying the coverage they feel they need.

Critics say the measure would encourage healthy people to buy the skimpy, low-cost plans, leaving sicker consumers who need more comprehensive coverage confronting unaffordable costs. The insurers' statement backs up that assertion, lending credence to wary senators' worries and complicating McConnell's task of winning them over.

The two groups say premiums would "skyrocket" for people with pre-existing conditions, especially for middle-income families who don't qualify for the bill's tax credit. They also say the plan would leave consumers with fewer insurance options, so "millions of more individuals will become uninsured."

The bill provides $70 billion for states to use to help contain rising costs for people with serious conditions. But the insurance groups' statement says that amount "is insufficient and additional funding will not make the provision workable for consumers or taxpayers."

The Cruz provision language in the bill is not final. McConnell and other Republicans are considering ways to revise it in hopes of winning broader support.

Major health insurers say bare-bones policies a nonstarter 07/15/17 [Last modified: Saturday, July 15, 2017 10:41pm]
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