[Congressional Record Volume 160, Number 134 (Thursday, September 18, 2014)]
[Senate]
[Pages S5794-S5796]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 2908. A bill to amend the Internal Revenue Code of 1986 to expand 
eligibility for the refundable credit for coverage under a qualified 
health plan, and for other purposes; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, the Affordable Care Act made great 
strides in improving access to health insurance for millions of 
Americans. Unfortunately, especially in high-cost geographic areas, 
some in the middle class are facing high insurance premiums.
  If you make a penny over $45,960 you lose all Federal assistance for 
purchasing health insurance through the new exchanges. This is 
especially hard for individuals between the ages of 50 and 64, who are 
facing higher premiums but do not yet qualify for Medicare.
  I have received thousands of calls and emails about access to health 
insurance. The high costs are a real problem. For example, Dave, one of 
my constituents from Livermore, CA, wrote to me to share how this 
policy has affected him. Dave is 60 and self-employed, making $65,000 
per year. He signed up for a plan through the new health insurance 
exchange to cover both himself and his wife. If they made just $3,000 
less per year they would have qualified for a subsidy and paid $491 for 
the second lowest cost silver plan. Since they are just over the 
threshold, the full cost of this plan is $1552. They decided to go with 
less robust coverage and still pay $1147 for a bronze plan. Under this 
legislation, Dave and his wife could get a better plan for less than 
half of what they pay now.
  Another constituent, Dan, lives in Riverside, CA, and is 62 years 
old. He wrote to me and explained that his pension is just barely too 
high to receive help with his health insurance premiums and that he 
just can't afford it. Currently, the second lowest cost silver plan for 
Dan and his wife would be $1141 per month. Under this legislation, they 
would be able to afford health insurance.
  The way the law is currently designed, there is a steep subsidy 
cliff.

[[Page S5796]]

This should gradually reduce, in a way that provides some help for more 
middle-income Americans so they pay no more than 9.5 percent their 
income in health insurance premiums.
  The Affordable Health Insurance for the Middle Class Act would do 
just that. This legislation extends the current subsidy up to 600 
percent of the Federal poverty level, which is $68,940 for an 
individual. As an individual makes more, their subsidy goes down.
  I am particularly concerned about older individuals who need medical 
care but face premiums they simply cannot afford. In California, it is 
estimated that approximately 360,600 individuals between the ages of 
50-64 who do not qualify for Medicaid or have employer-based coverage 
would see premiums greater than 9.5 percent of their income. Nearly 
98,000 of these are expected to remain uninsured due to the cost. This 
is a simple fix to improve the law that will further increase access to 
coverage.
  The bill is paid for by a nominal increase in the federal cigarette 
tax, which amounts to five cents per pack.
  I urge my colleagues to join me in supporting the Affordable Health 
Insurance for the Middle Class Act. It is commonsense to have a gradual 
decline in the federal assistance for health insurance and help those 
who are just out of reach of affording it on their own.
  I look forward to working with my colleagues on this important issue.

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