Tester blames Trump for health insurance rate hikes

U.S. Sen. Jon Tester, D-Mont., Wednesday blamed Montana's 2018 proposed health insurance rate increases on efforts by the Trump administration to "try to undermine intentionally the health care system in this country."

"In business you want predictability, and in the health care industry because of Washington, D.C.'s, action, there is no predictability," Tester said in a telephone press call.

He said the failure to advertise the 2017 open enrollment period, when people can buy insurance through the Obamacare exchanges, and threats by President  Donald Trump to withhold money for cost sharing reduction payments to insurance providers that lower out-of-pocket costs for enrollees has led to the rise in rates.

The Montana state auditor's office Tuesday released the proposed rate changes for 2018. A release from the auditor's office said providers of individual and group markets have requested increases on individual and small group plans in 2018.

If the request is granted this August by the auditor's office, rates would increase for individual plans. Rates for such plans would increase by an average of  23.1 percent for Blue Cross Blue Shield Montana, 4 percent  for The Montana Health CO-OP plans  and 7.4 percent for PacificSource plans.

Rates for small groups plans would  rise an average of 6.7 percent for consumers with Blue Cross and UnitedHealthcare, 6.4 percent  for PacificSource plans and 2 percent for Montana Health CO-OP plans.  

The release said that, under state law, the auditor has the authority to review rate increase requests, but not deny an increases unless the rates are determined to be unfairly discriminatory. The rate changes would not affect rates for people who either receive insurance through their employers or from a government program such as Medicaid.

Montana Republicans have blamed Obamacare for the increase rates, saying the health care law has limited consumer choices.

State Auditor Matthew Rosendale, a possible Republican contender to unseat Tester in next year's Senate race, said "Montanans deserve better than the current policies like Obamacare that reduce access to health care, limit choices  and drive up costs."

"Once again, Montanans will see their health insurance premiums rise faster than their incomes - this flies in the face of the promises of lower premiums and affordable coverage," Daines said in a press release. "I will continue to work to reverse this disastrous Obamacare reality."

"Despite promises that Obamacare would lower premiums and out-of-pocket expenses, hard-working Montanans are facing yet another year of higher insurance costs," Gianforte said in a statement. "On average, Montanans have seen their premiums spike 133 percent since 2013. Next year, about 30,000 Montanans, a majority of the individual market in our state, could see their premiums rise by over 23 percent."  

But not all insurers agree. Representatives of Blue Cross Blue Shield, Montana Health CO-OP and PacificSource Health Plans said the proposal to repeal and replace Obamacare including cuts to Medicaid will cause bigger insurance premium increases in Montana.

Jerry Dworak of Montana Health CO-OP said he believes prices are now starting to stabilize. If the health law isn't changed, he projected that his company's premiums would go up 5 percent in 2018.

During Wednesday's press conference, Tester said that he is willing to work with lawmakers from both parties to improve access to and lower the cost of health care, but the bill unveiled by the Republican Senate leadership in July is "an unmitigated disaster."

He said the legislation was crafted behind closed doors and continues to change with backroom deals and special interest buyoffs.

Through listening sessions, town hall meetings and phone calls he has heard from different groups within Montana's medical community including doctors, nurses, hospitals and insurance companies who are against the bill, Tester said.

"Montanans and Montana's health community have come to a consensus that this bill is bad for Montanans," Tester said.

He added that the proposal would roll back Obamacare protections on consumers with pre-existing conditions, a ban on lifetime caps on care and provisions that allow children to be covered on their parent's insurance through age 26.

Tester said it doesn't address issues such as rising deductibles and premiums or controlling prescription drug costs.

"I think there is an opportunity to get things done here, but you need to go in with the goal of improving affordability and accessibility," Tester said.

He added that such legislation cannot be written in secret, and proposals that would reverse Obamacare's Medicaid expansion or block grant Medicaid were nonstarters.

"The truth is that is not going to get us where we need to be in this country," Tester said.

The Congressional Budget Office is set to release its scores for the new senate plan next week before a vote on the bill by the full senate takes place.

Tester said he also is co-sponsoring legislation to require pharmaceutical companies to disclose if they are planning to significantly increase the price of drugs and why.

The legislation has been referred to the Senate Finance Committee.

The Stopping the Pharmaceutical Industry from Keeping Drugs Expensive Act, or SPIKE Act, would amend a section of the Social Security Act to require pharmaceutical companies to report any increases to the U.S. Department of Health and Human Services as well as a justification for the planned increase.

A justification for any planned increase of the drug would then be posted on the website of the Center for Medicare and Medicaid Services along with a summary of that justification written in language that is easily understandable to beneficiaries, the bill says.

"Forcing these pharmaceutical companies to disclose valuable information if they gouge their consumers will hopefully deter this harmful practice." Tester said.