[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2500 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 2500
To provide for the establishment of a health insurance premium
reduction program to ensure that health insurance premiums remain low
for American families.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2016
Mr. Bennet introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To provide for the establishment of a health insurance premium
reduction program to ensure that health insurance premiums remain low
for American families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Care Premium Reduction Act''.
SEC. 2. STATE HEALTH INSURANCE PREMIUM REDUCTION PROGRAM.
Part 5 of subtitle D of title I of the Patient Protection and
Affordable Care Act (42 U.S.C. 18061 et seq.) is amended by adding at
the end the following:
``SEC. 1344. STATE HEALTH INSURANCE PREMIUM REDUCTION PROGRAM.
``(a) Grants.--The Secretary shall establish a program for awarding
a grant to a State to enable such State to support, in connection with
reducing health insurance premiums and providing affordable health
benefits coverage that includes a risk-adjustment mechanism for the
purpose of supporting the purchase of private health insurance by
consumers in the State, and for ensuring stable health insurance
premiums through the activities carried out under subsection (e).
``(b) Requirement.--To be eligible to receive a grant under this
section a State shall--
``(1) submit to the Secretary an application at such time,
in such manner, and containing such information as the
Secretary shall require;
``(2) include in such application a description of the
State private health insurance market, including a list of
county-specific premium increase percentages that are 10
percent or greater, and an assurance that such State will
comply with the requirements of section 1101(c)(2); and
``(3) include in such application an assurance that the
State will expend all or a portion of the funds received under
the grant on the risk-adjustment mechanism for the State.
``(c) Priority Review.--
``(1) Evaluation.--The Secretary, in consultation with the
Assistant Secretary for Planning and Evaluation, shall conduct
an evaluation of all regions in the United States to assess
which regions (that may be comprised of collections of
geographic subdivisions such as Core-Based Statistical Areas,
census tracts, or ZIP Codes) have the highest premiums for
health insurance coverage.
``(2) Priority.--States identified under the evaluation
under paragraph (1) shall receive priority in obtaining grants
under this section in order to stabilize premium trends.
``(d) Use of Funds.--
``(1) Set-aside.--A State that receives a grant under this
section shall use grant funds to carry out the following:
``(A) Activities to provide for a reduction in
health insurance premium trends and actual premiums
through programs such as State-specific cost-sharing
programs to reduce deductibles and out-of-pocket
expenses.
``(B) Activities to increase the number of
individuals in the State that receive health insurance
coverage.
``(C) A State-run premium rate review program to
determine unreasonable health insurance premium
increases and assist the State in facilitating an
effective program to reduce such rates in accordance
with section 2794 of the Public Health Service Act.
``(D) Activities under section 1332 to allow for
greater State flexibility in addressing affordability,
quality, and accessibility of health insurance in the
States.
``(2) Bonus payments.--
``(A) In general.--The Secretary, in consultation
with the Assistant Secretary for Planning and
Evaluation, shall conduct an evaluation of all regions
in the United States to assess which regions (that may
be comprised of collections of geographic subdivisions
such as Core-Based Statistical Areas, census tracts, or
ZIP Codes) have the highest premiums for health
insurance coverage. Such evaluation shall determine the
following:
``(i) The number of individuals with access
to health insurance coverage in each region.
``(ii) The average premiums and out-of-
pocket expenses per person in each such region.
``(iii) The amount of uncompensated health
care provided by hospitals, clinics, and
safety-net providers in each such region.
``(iv) The extent to which a State has used
tools to control and analyze health care costs
through health care data collection.
``(B) Use.--Amounts provided as a bonus payment
under this paragraph may be used by the State for
activities designed to reduce health insurance
premiums, or to keep such premiums from rising, for
consumers in the State, in coordination with the
Department of Health and Human Services. Such
activities may include the provision of direct
assistance to consumers in the form of tax credits to
reduce premiums.
``(e) Risk Mitigation and Risk Corridors.--
``(1) In general.--The Secretary shall distribute amounts
available for the risk mitigation and risk corridor program
under subsection (d) for calendar years 2016, 2017, and 2018.
``(2) Payments.--Payments shall be made under this
subsection in accordance with such section 1342.
``(3) Use of funds.--A State shall use amounts received
under this subsection for activities described in subsection
(d)(1).
``(f) Funding.--
``(1) In general.--The Secretary shall carry out this
section using amounts made available for the Department of
Health and Human Services and remaining unobligated.
``(2) No limitation on other assistance.--Nothing in this
section shall be construed as prohibiting the Secretary and the
Secretary of the Treasury from utilizing additional funds to
carry out this section or other programs to support the
subsidized, affordable purchase of private health insurance
coverage, notwithstanding the Consolidated and Further
Continuing Appropriations Act, 2015 (Public Law 113-235).''.
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