SC Alliance of Health Plans Issues Statement on King v. Burwell Decision

COLUMBIA, SC – The Supreme Court’s decision in the King v. Burwell case today brings important clarity and certainty to ACA and to the health insurance markets in South Carolina.  The federally provided subsidies for qualified individuals will continue so that more South Carolinians can have access to health insurance.

The SCAHP and its members will continue to focus on the needs of our members and to improve access and affordability.  To do this, all stakeholders must address the real drivers of costs and quality in health care in South Carolina.  These include
Payment Reform — Aligning payments and incentives to providers with quality based outcomes rather than the quantity of services performed by doctors and hospitals.

• Provider Consolidation — The recent wave of provider consolidation is driving higher health care costs across the country. When hospitals merge in concentrated areas or acquire physician practices, the result can cause price increases of more than 20 percent for consumers. Moreover, research increasingly shows that mergers result in higher prices for consumers without any improvement in the quality of care. Better coordination among providers can be achieved without resorting to consolidation. Health plans continue to pioneer new payment reforms that demonstrate more efficient care delivery, better value, and improved health outcomes for patients.
• Repeal the ACA’s health insurance tax (HIT) — This is a common-sense solution that would benefit millions. By eliminating the HIT, policymakers would take an important step to improve health care access and affordability for families, seniors enrolled in Medicare Advantage, large and small businesses, and state Medicaid programs.  Lawmakers should also take action to provide greater flexibility for employers so that they can offer coverage and benefits that best meet their employees’ needs.
• Maintain the Current Definition of Small-Group Market –To avoid estimated premium increases and market instability, policymakers should support bipartisan legislation to maintain the current small-group definition for 2016 and beyond, and preserve access to affordable coverage and care for 3.4 million employees and their families.
• Protect Innovation and Flexibility in Health Plan Benefit Design and Features — Protecting health plans’ ability to develop insurance products with innovative benefit designs and features will provide employers and employees with more affordable coverage options. Providing consumers with more choices not only encourages competition and medical innovation, but also keeps costs lower.