The incoming president’s plan mimics an insurance industry letter, instead of pushing a promised public option or Democratic legislation to expand Medicare
By Andrew Perez and Julia Rock
Jan. 19, 2021
President-elect Joe Biden’s new COVID relief plan does not adopt existing Democratic legislation to expand government sponsored medical coverage nor does it propose a promised public health insurance option. Instead, it adopts proposals from health insurance lobbying groups’ recent letter to lawmakers demanding lucrative new subsidies for insurance companies, at a moment when those corporations have recorded record profits as millions lose coverage and many face claims denials.
Biden’s plan would shovel billions of dollars to private health insurers by providing subsidies for Americans to buy coverage through the Affordable Care Act (ACA) marketplaces, which are far more expensive than government health care programs and have at times been plagued by high rates of claim denials. The plan would also subsidize COBRA continuation coverage through September, allowing workers to keep their employer health insurance plans when they’re laid off.
Those initiatives — which could further boost insurers’ skyrocketing profits — were recently recommended in a letter to lawmakers from America’s Health Insurance Plans (AHIP) and the Blue Cross Blue Shield Association, two insurance lobby groups in Washington that have opposed the expansion of government-sponsored health care programs.
A few days after the letter was sent, AHIP said that “health insurance providers are eager to assist the Biden health team.”
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