Yesterday, Fifth Freedom wrote about the Senate Finance Committee voting down two amendments that would have added a public option to the Senate health care bill.  Even though the amendments were rejected, the public option could still make it through Congress.  We covered the budget reconciliation process, one possibility.  Another possibility is the so-called “trigger” amendment written by Senator Olympia Snowe (R-MA).

Essentially, Snowe’s trigger amendment would create a public option plan in an individual state if, after a set period of time, that state did not have at least two private insurance plans available that met certain maximum cost requirements.  The plans must cost a maximum of 3% of an individual’s income making 133% of the federal poverty level, and 13% of an individual’s income at 300% of the federal poverty level and above.

For one person, the federal poverty level is $10,830.  For two, $14,570.  For family of four, $22,050.  This means an individual plan would cost from $432 to $2,500 per year.

While the Senate Finance Committee is continuing to review amendments, it appears that Snowe has withdrawn her trigger for now, and plans to introduce it when the bill goes to the full Senate for debate.

As it is so brief, we will provide the amendment in full here:

SNOWE AMENDMENT #1 – COVERAGE
Short Title: Provision of Safety Net fallback plan to ensure access to affordable coverage
Description of Amendment: This amendment establishes a non-profit government corporation through which a ―safety net plan would be provided in any state in which affordable coverage was not available in the Exchange to at least 95% of state residents.  An individual would be deemed to have affordable access if either of two conditions is met.  First, two or more plans are offered with premiums – the cost of which does not exceed a specified percentage of the individual‘s adjusted gross income (AGI), after deducting any available tax credit or employer subsidy from the cost of such premium.  The percentage contribution shall range from 3 percent of AGI at 133 percent of the Federal Poverty Level, to 13 percent at 300 percent and above.

Assessment of affordability shall follow submission of plan premiums filed one year in advance of the first day of each policy year, and should a state be found to not meet the 95% threshold, plans would be permitted to submit of any revised premium filings, after which a second assessment of affordability shall be performed.  If, after that second assessment, a state still be deemed as not meeting the affordability standard, the safety net plan shall be offered within that state, and shall be available at the pending open season enrollment.

Cost: Offset to be provided.

If you are interested in the trigger amendment, you may wish to contact your Senator about it.  You can find contact information here: Contact the Senate.

Sources:

Time – Health Care: Of Triggers and Timing
http://swampland.blogs.time.com/2009/09/30/health-care-of-triggers-and-timing/

Washington Post – Olympia Snowe’s Trigger Amendment
http://voices.washingtonpost.com/ezra-klein/2009/09/olympia_snowes_trigger_amendme.html

Senate document – Amendments Relating to Expanding Health Care Coverage (348 pages, .pdf file – trigger on page 207)

http://finance.senate.gov/sitepages/leg/LEG%202009/091909%20AHFA%20Coverage%20Amendments.pdf

Filed under: health care reform, News by admin