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Press Release: Hatch Presses CMS on Opt-Out for Insurers on Federal Exchanges

Press Release: Hatch Presses CMS on Opt-Out for Insurers on Federal Exchanges

WASHINGTON – Senate Finance Committee Chairman Orrin Hatch (R-Utah) penned a letter pressing the Centers for Medicare and Medicaid Services (CMS) for information on an opt-out provision crafted to guarantee insurance companies on the federal exchange the right to end their contracts if federal subsidies such as the Advanced Premium Tax Credits (APTCs) are terminated.   The letter, written to CMS Administrator Marilyn Tavenner, was sent on the heels of the Administration announcing in a letter to Chairman Hatch that they have no contingency plans for patients on federal exchanges if the U.S. Supreme Court rules against the Obama Administration in the King v. Burwell case.  

“While the Administration assures HealthCare.gov policyholders that “nothing has changed,” it has been conveying a contradictory message to health insurance companies. Late last year, CMS altered the agreements to participate in the federal exchange, guaranteeing insurance companies the right to pull out of their contracts should federal subsidies such as the APTC come to an end – in other words, if the Administration loses before the Supreme Court,” Hatch wrote.

The text of the letter is below and a signed copy can be found here.

Source: Senate Finance Committee

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