Cramer Bill Eliminating The New Pre-existing Condition Receives Broad Bipartisan Support

Press Release

Congressman Kevin Cramer says legislation he has introduced prohibits a new loophole that allows health insurance providers to discontinue the health insurance of chronically sick individuals if a charity or non-profit helps them pay their insurance premiums. To date, the bill has received broad bipartisan support with 120 Congressional Members from both parties and all political spectrums signing on as co-sponsors.

The bill is H.R. 3742, the Access to Marketplace Insurance Act. Cramer introduced it last October in response to an interim final rule issued by the Centers for Medicaid and Medicare Services (CMS). The rule gave authority to insurers offering plans on the Obamacare exchanges to deny non-profit charities from providing premium assistance, a service provided to sick individuals who cannot afford to pay their health insurance premiums on their own accord. Since the release of the interim final rule, plans in 38 states have announced a prohibition against allowing non-profits, civic groups and churches to help with health insurance premiums for individuals and families. H.R. 3742 requires health insurance companies to accept payments from non-profit organizations.

For many years, non-profits, civic groups, and churches have helped pay health insurance premiums for individuals and families. Patients with rare diseases and catastrophic illnesses use this program to pay for their health insurance premiums, which become inflated due to the price of rare-disease medications that can cost upwards of $500,000 per year. While many health plans cover the majority of these costs, some plans put low-income individuals in financial distress. As a result, chronically ill individuals may face a choice between paying bills or taking medications.

"Putting politics aside, we all agree health coverage should not be denied because a non-profit charity is helping individuals afford their health insurance plan," said Cramer. "This bill removes the handcuffs from private charities, allowing them to assist insured patients pay their premiums without fear of breaking the law. It allows charities to be charitable."

He said the bill's large number of cosponsors recognize it is wrong to ban non-profits, civic groups and churches from assisting with premium payments. "This is a very deliberate bipartisan effort," Cramer said of the bill. "Having this many cosponsors creates a snowball effect that increases interest and sends a strong message to CMS. I am very hopeful this bill will pass in the upcoming lame duck session, or that CMS will change the rule without legislation."

Cramer spoke about the bill this week at a Congressional lunch briefing and dinner hosted by Patient Services, Inc. (PSI), one of several non-profit patient assistance organizations that provides individuals with access to lives-saving and life-sustaining treatments with premium payment. In April, Cramer was presented with PSI's Patient Champion Award.

"Two things are contagious in our society -- hope and despair," Cramer said. "With this legislation I choose to spread hope."

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