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State Senate removes language for study of Medicaid expansion costs, benefits

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A Lee Enterprises, Incorporated newspaper. Majority shareholder: David Hoffmann, Hoffmann Media Group.

State Senate removes language for study of Medicaid expansion costs, benefits

Medicaid Stethoscope and pills

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Richard Craver

A small step taken by the state House toward the potential expansion of Medicaid in North Carolina was stripped out by a Senate committee Wednesday.

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Krawiec

WALT UNKS

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Lambeth

MLewis

rcraver@wsjournal.com 336-727-7376 @rcraverWSJ

House Bill 933

A version of House Bill 933 amended by a Senate healthcare committee officially contains language that could give some North Carolinians access to a cheaper and skimpier health-insurance option.

The bill was placed in the Senate Rules committee, which did not have it on the agenda for Wednesday's meeting. However, it was on a list of bills that had been forwarded to the committee.

The option appeals to opponents of the federal Affordable Care Act, often referred to as “Obamacare.” The option’s critics worry about the potential loss of ACA rules requiring coverage of pre-existing conditions, barring medical underwriting and prohibiting annual or lifetime benefit limits.

The amendment would allow nonprofit organizations, such as proponent N.C. Farm Bureau, to independently or jointly sponsor a self-funded health-benefit plan, also known as an association health plan.

Under the new HB933 language, the plans wouldn’t be considered as insurance, so certain state insurance regulations wouldn’t apply to them.

The plans represent a key element of the Trump administration’s initiative to lower monthly premiums for healthier individuals, a move that critics say could increase costs for sicker people.

Underwriting allows insurers to set different premium costs for different employers, as well as to exclude coverage for individuals with pre-existing conditions or to charge them a higher premium. Underwriting was mostly eliminated by the ACA.

Under HB933, nonprofits offering the skimpier plans would have to meet several organizational requirements, such as having been in existence for at least 10 years, offering statewide membership eligibility and providing members with representation on the governing board and committees.

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