azar denies that trump policies are driving up health insurance costs creditcarolyn kasterassociated pressjune 6 2018washington alex m azar ii the secretary of health and human services denied on wednesday that trump administration policies were driving up health insurance costs which many experts expect to surge again in 2019mr azar testifying before a house committee vigorously disputed suggestions by democrats that president trump had sabotaged affordable care act marketplaces where millions of people obtain insurance subsidized by the federal governmentin the market as it now exists he said theres no incentive for insurance companies to in any way contain their cost increases because federal subsidies generally rise along with premiumsthose prices are going to go up and absent statutory change theres little we can do to stop that premium increase because the subsidies chase those premiums mr azar saidthe congressional budget office said the full unsubsidized premium for a benchmark midlevel plan in the marketplaces rose 34 percent this year on average and was likely to increase about 15 percent next year but some insurers have already requested rate increases of more than 30 percent for 2019given this dynamic mr azar said the trump administration is trying to make other options available to people less expensive insurance that will be exempt from many coverage requirements of the affordable care actmr trump intends to expand access to shortterm limitedduration insurance allowing such policies to run for 364 days instead of the current limit of three months in addition he is making it easier for businesses to band together and provide insurance through association health planscritics say the new plans would attract healthier people and employers with younger healthier workers driving up costs for those who remain in the affordable care act marketplaces the new plans would not have to provide certain essential health benefits like mental health care emergency services maternity and newborn care and prescription drugsassociation health plans will actually bring down the cost of insurance mr azar saidinsurers and consumer advocates say mr trumps efforts to undercut the affordable care act have created uncertainty for insurers causing some to withdraw from the public marketplacesi have not heard that nor do i believe its accurate mr azar said there are many major providers that are providing insurance packages and frankly making a ton of money off of providing in the obamacare marketsnancy pelosi the house democratic leader cited news reports indicating that insurers around the country were using trump administration policies to justify 2019 rate increases in maine maryland new york pennsylvania vermont virginia and washington among other statesin seeking higher rates for 2019 insurers point to several developments mr trump cut off subsidies that insurers use to reduce outofpocket medical costs for lowincome people and congress with encouragement from mr trump eliminated tax penalties for people who go without insurance starting next year giving healthier people less incentive to obtain coveragethese steps destabilize the health care system and will increase costs and undermine patient protections for millions of americans