As Republicans Race To Cut Medicaid, Schatz, Luján Introduce Legislation To Create Public Health Insurance Option, Provide More People With Affordable Health Care

Republican Tax Plan Would Kick 16 Million Americans Off Of Health Insurance; Drive Up Monthly Premiums, Out-Of-Pocket Costs

WASHINGTON – As Republicans advance a tax plan that would kick 16 million Americans off of health insurance – including 8 million from Medicaid – U.S. Senators Brian Schatz (D-Hawai‘i) and Ben Ray Luján (D-N.M.) today reintroduced the State Public Option Act, bicameral legislation to create a Medicaid-based public health insurance option by providing Americans with a new high-quality, low-cost choice when purchasing health insurance.

“Instead of helping people access better, more affordable health care, Republicans are working to kick millions of Americans off of Medicaid, all so that they can cut taxes for billionaires,” said Senator Schatz. “By opening up state Medicaid programs to everyone regardless of income, our bill will help close the coverage gap and provide every American with a high-quality, low-cost insurance option.”

“For communities to thrive, every American must have access to quality, affordable health care,” said Senator Luján. “A state public option brings us closer to achieving universal coverage and strengthens our entire health care system. I’m proud to reintroduce this legislation to help more New Mexicans access the life-saving care they deserve.”

The State Public Option Act will allow states to create a Medicaid buy-in program for all residents regardless of income, giving everyone the option to enroll in a state-driven Medicaid health insurance plan. State public option programs have been shown to lower costs, increase consumers’ choice in plans, and improve equity in coverage.

Medicaid is a popular and cost-effective program with a large provider network. The program has the same positive ratings as private insurance, but provides health coverage at a much lower cost. Based on partnerships between state and federal governments, Medicaid also gives states the flexibility to adapt services and models of care based on their individual needs.

In the Senate, the Schatz-Luján legislation is cosponsored by U.S. Senators Jeff Merkley (D-Ore.), Jeanne Shaheen (D-N.H.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.), Amy Klobuchar (D-Minn.), Peter Welch (D-Vt.), Jacky Rosen (D-Nev.), Tina Smith (D-Minn.), Chris Murphy (D-Conn.), Cory Booker (D-N.J.), and Dick Durbin (D-Ill.). Companion legislation was introduced in the House of Representatives by U.S. Representative Kim Schrier (D-Wash.).

The full text of the State Public Option Act is available here.

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