THE MacARTHUR AMENDMENT

 The MacArthur Amendment keeps our promises of lowering costs and protecting high-risk patients by giving states greater flexibility and more control over local insurance markets. 

WHAT DOES THIS AMENDMENT DO?

The MacArthur Amendment provides states the option to apply for waivers from certain federal insurance regulations that increase insurance premiums. This new flexibility will allow states to design insurance frameworks that are right for their unique populations, providing superior care and lowering costs for patients.

The MacArthur amendment goes further by allowing states to set even higher limits — so that older adults could be charged six times, or more, what younger adults are charged. AARP Blog

‘‘(A) In the case of plan years beginning on or after January 1, 2018, to apply, subject to paragraph (5), under subsection 15 (a)(1)(A)(iii), instead of the ratio specified in such subsection, a higher ratio specified by the State (consistent with section 2707(c)). Polictico

Our webpage on Section 135 AHCA 3:1 – 5:1 Age Rating

HOW DOES IT WORK?

Any states that apply for a waiver must attest that its purpose is to reduce the cost of health care or increase the number of people with health care coverage.

HOW DOES IT PROTECT HIGH-RISK INDIVIDUALS?

The amendment’s limited waiver for health rating requires states to set up a program for high-risk individuals or premium stabilization, or to participate in the federal invisible risk-sharing program. No state may obtain a waiver for health status unless it has taken these efforts to protect those who might be affected.  In states with a waiver, individuals who maintain  Sec. 133. Continuous health  * Our page on Continous Coverage * could not be rated based on health status.

MYTHS AND FACTS ABOUT THE MACARTHUR AMENDMENT

Myth #1: This Amendment does not cover pre-existing conditions. 

FACT: The MacArthur Amendment explicitly maintains protections for pre-existing conditions. NO STATE, under ANY circumstances, may ever obtain a waiver for guaranteed issue of coverage, guaranteed renewability of coverage, or the prohibition on denying coverage due to pre-existing conditions. The amendment specifically clarifies that its provisions cannot be construed as allowing insurers to limit coverage for those with pre-existing conditions. All of these protections will remain the law.

Myth #2: This Amendment will price those with pre-existing conditions out of the market, making health care unaffordable for them. 

FACT: The amendment’s limited waiver for health rating requires states to set up a program for high-risk individuals or premium stabilization, or to participate in the federal invisible risk sharing program. No state may obtain a waiver for health status unless it has taken these efforts to protect those who might be affected. In states with a waiver, individuals who maintain continuous coverage could not be rated based on health status.

Myth #3: High-risk pools have traditionally been underfunded by states and the federal government, resulting in poor coverage and high costs for those who need insurance the most. 

FACT: The AHCA sets aside $100 billion over ten years to help states with high-risk pools and other innovations. It sets aside an additional $15 billion specifically for maternity care, mental health care, and substance abuse treatment. And it sets aside an ADDITIONAL $15 billion for a federal invisible risk-sharing program — another innovative way to help people access affordable coverage.

Myth #4: Under this amendment, States do not have to cover essential health benefits. 

FACT: This amendment ensures essential health benefits are the federal law of the land and maintains other important protections. States have the option to obtain a waiver regarding federal essential health benefits, but the state must publicly attest its purpose for doing so (to reduce the cost of health care coverage, increase the number of people with health care coverage, etc.) and it must specify the benefits it will require instead of the federal standard.

NO STATE, under ANY circumstances, may ever obtain a waiver for pre-existing condition protection, prohibition on gender discrimination, for guaranteed issue and renewability, or for the right of dependents to stay on a family plan up to age 26.

Myth #5: 129 Million Americans have pre-existing conditions and could be denied coverage. 

FACT: This legislation addresses the 7% of Americans on the individual market, and those in the small group market. Anyone with employer-provided coverage or government coverage (Medicare, Medicaid, Tricare, VA benefits, etc.) would not be affected. Again, this amendment would not allow any state to deny coverage to those with pre-existing conditions, and would require the extensive protections described above for those with riskier health profiles. It is also worth noting that many states required insurers to offer coverage to those with pre-existing conditions before Obamacare was implemented.

Links & Resources
Health Affairs.org  

 

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