Senator Kahn asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Kahn’s statement is as follows:
Madam President, we are grappling in our communities; we are struggling in our communities, in our state, and in our nation with the issue of controlling healthcare costs—giving our people access at an affordable rate. In 2011, an estimated 11.4 million Americans chose high-deductible health care plans, coupled with Health Savings Accounts, as their means for having affordable health care and access to it. This combination is popular because it provides a low-cost alternative, which is to traditional insurance plan.
This resolution before us addresses how the medical loss ratio provision and the Patient Protection and Affordable Care Act negatively impact high-deductible health care plans and our people’s ability to access them, to choose them, to buy them; and, therefore, their ability to have health care.
Often health care consumers will couple a high-deductible health care plan with a Health Savings Account as a way to offset the costs of the high deductible. The Obamacare act requires insurance companies to meet a minimum medical loss ratio of 80-85 percent, which means that 80-85 percent of revenues must be spent on health care costs, or they rebate the remainder to consumers. In years when there are fewer claims, insurance companies must rebate money to customers rather than savings for years, or there may be more claims. In particular, for low-cost plans which have the same fixed cost overhead, this has been destructive.
This resolution supports and amendment to the Patient Protection and Affordable Care Act that will allow insurance companies to consider HSA contributions toward the payment of benefits and premiums in the medical loss ratio calculations.
I ask our chamber to support it, Madam President.