Rep. Schrier Introduces Legislation to Lower Health Care Costs, Expand Medicaid Public Option

WASHINGTON, D.C. – Today, Representative Kim Schrier, alongside Senators Brian Schatz (D-HI) and Ben Ray Lujan (D-NM), introduced the State Public Option Act to increase access to affordable, high-quality health insurance by allowing states to create a Medicaid buy-in program for all residents.

While the Affordable Care Act made tremendous strides in providing health insurance for millions of Americans, nearly 27 million people are still uninsured. 64% of adults without health coverage cite high costs as the main reason. The American Rescue Plan implemented a cap on insurance premiums at 8.5% of income in order to meet the needs of those families and get more people insured. The Inflation Reduction Act extended those price caps.

Some people do not have access to traditional insurance in their region, however. That is why the option to buy into Medicaid is so important. 

Medicaid has demonstrated effectiveness and consistently gets high ratings from patients. Because it is funded and implemented by a partnership between the federal government and states, a Medicaid public option would still allow for flexibility at the state level. This national bill would support Washington's statewide efforts to utilize public health plans and bring down health care costs for Washingtonians.

The State Public Option Act would specifically: 

• Create an option for states to expand Medicaid eligibility to all residents not enrolled in another insurance plan.
• Require states that take up the Medicaid buy-in option to offer the plans on the health insurance exchanges.
• Provide states with a 90 percent increased Federal Medical Assistance Percentage (FMAP) match for administrative expenses associated with the buy-in.

“Despite great progress in recent years, there are still approximately 27 million Americans who, often due to high costs, do not have health insurance. These individuals frequently go without essential medical check-ups, tests, and procedures, which can lead to health complications down the road,” said Rep. Schrier. “This legislation addresses this issue by expanding access to Medicaid as a public option, which will increase competition, lower costs, and lead to more Americans accessing quality health insurance and health care.”

This legislation is cosponsored by Representatives McCollum (MN-4), Swalwell (CA-14), Cohen (TN-9), Tonko (NY-20), Holmes Norton (D.C.), Matsui (CA-7), Omar (MN-5), Phillips (MN-3), and Moore (WI-4).