Media Advisory: Rep. Veasey Joins TX Delegation Urging Attorney General Holder to Stop States Like TX From Imposing Unfair Restrictions on ACA “Navigators”
Texas is 1 of 9 states that have passed restrictive navigator laws and declined to expand Medicaid services
Washington, D.C. – Congressman Marc Veasey, TX-33, joined fellow members of the Texas House Democratic Congressional Delegation in a letter to Attorney General Eric Holder requesting the Department of Justice to initiate legal proceedings to stop the Texas Department of Insurance (TDI) from imposing arbitrary and discriminatory restrictions on "Navigators" for health insurance exchanges. Texas is one of nine states whose laws limit how health care navigators can help constituents buy insurance and learn if they are eligible for federal assistance to pay for it.
Who:
Congressman Marc Veasey
Congresswoman Sheila Jackson Lee
Congressman Gene Green
Congressman Al Green
Congresswoman Eddie Bernice Johnson
Congressman Joaquin Castro
Other Members of the Texas Democratic Congressional Delegation
What:
Press Conference to announce and discuss the letter delivered to Attorney General Eric Holder.
Date:
Wednesday, January 15, 2014
Time:
1pm Eastern Time
Location:
HVC Studio B
A copy of the letter can be found below:
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January 9, 2014
The Honorable Eric Holder
Attorney General of the United States
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, D.C. 20530-0001
Dear Attorney General Holder:
We are members of the Texas Democratic Congressional Delegation and are writing to request that the Department of Justice initiate legal proceedings seeking to enjoin and declare invalid regulations proposed by the Texas Department of Insurance (TDI) that impose arbitrary, burdensome, and discriminatory restrictions on Navigators for federal health insurance exchanges.
We believe the actions of the TDI constitute an impermissible state infringement and interference with the operation of the health insurance exchange established pursuant to federal law in violation of the Supremacy Clause of Article VI of the U.S. Constitution. The state of Texas could have established its own health insurance exchange but refused due to the opposition of its governor and other state officials. Given this refusal and opposition to the Patient Protectionand Affordable Care Act (ACA), Pub. L. No. 111-148, §2702, 124 Stat. 119, 318-319 (2010), it appears clear to us that the dominant, indeed exclusive, purpose of the regulations proposed by the TDI is to sabotage and impede the successful implementation of the health care law.
Navigators are entities or organizations authorized by Section 1311 of the Affordable Care Act to assist consumers seeking to apply for health insurance through a health benefit exchange.
Specifically, the TDI is in the process of promulgating regulations requiring federal navigators to register with, and obtain a license from, the state insurance agency at an initial cost of $50, which must be renewed annually at a minimum cost of an added $50. (Section 19.4005). Additionally, TDI's proposed regulations subject each federal navigator in Texas to fingerprinting and background investigation requirements. The regulations require the federal navigator to bear the cost of fingerprinting, which is estimated to range from $41 to $62.
(Section 19.4005).
The regulations proposed by TDI also imposes unnecessary and burdensome financial responsibility requirements on navigator entities which can only be satisfied by: (1) by obtaining a $50,000 surety bond; (2) obtaining a professional liability policy of at least $100,000, with a deductible of not more than 10 percent; or (3) by depositing $25,000 in securities backed by the full faith and credit of the U.S. government with the Texas State Comptroller. (Section 19.4011).
Finally, the TDI proposed regulations require federal navigators to complete a department certified preregistration course of at least 40 hours of education, which TDI estimates to cost between $200-$800, and thereafter to complete an additional six hours of continuing education annually at a cost of $60 to $120. (Section 19.4009).
A comparison of the activities performed by federal navigators and those performed by certified benefits counselors (CBC) reveals the arbitrary and dubious nature of the regulatory requirements TDI seeks to impose on federal navigators. Certified benefits counselors do not sell products. Neither do federal navigators. Certified benefits counselors help consumers (including seniors and those in greatest economic need) navigate government benefits programs such as Social Security, Supplemental Security Income, Medicaid, Medicare, Supplemental Nutrition Assistance Program, and Veterans benefits. Federal navigators in Texas only assist consumers in navigating the health insurance exchange operated by the federal government for Texans.
Despite the greater range of activities conducted by certified benefits counselors, TDI does not require that they be fingerprinted. Unlike federal navigators, certified benefits counselors need only complete 25 hours of classroom training, which is provided free of charge. Nor are certified benefits counselors required to pay a registration fee.
Legislative efforts to repeal or undermine the Affordable Care Act legislatively have failed more than 46 times. It therefore appears that Texas state officials are continuing the effort to sabotage the new health care law by imposing excessive, unnecessary, and arbitrary regulatory requirements on federal navigators. Worse, these actions are being taken impervious to the harm inflicted on the 22.7 million members of working families in Texas who are eligible to enroll in the health insurance exchange.
This appears to be particularly true since federal navigators are already required under the terms of the grant funding their activities awarded by the Center for Medicare and Medicaid Services (CMS) to:
- adhere to strict security and privacy standards, including how to safeguard a consumer's personal information;
- complete 20-30 hours of training to be certified, will take additional training throughout the year, and will renew their certification yearly; and
- complete specific training and are subject to federal criminal penalties for violations of privacy or fraud statutes, on top of any relevant state law penalties.
For these reasons, we request the Department of Justice to initiate legal proceedings to enjoin and declare invalid regulations proposed by the Texas Department of Insurance (TDI) that impose arbitrary, burdensome, and discriminatory restrictions on federal navigators.
We look forward to your prompt response to this request.
Very Truly Yours,
Sheila Jackson Lee, Chair
Member of Congress
Gene Green
Member of Congress
Eddie Berncie Johnson
Member of Congress
Ruben Hinojosa
Member of Congress
Henry Cuellar
Member of Congress
Al Green
Member of Congress
Marc Veasey
Member of Congress
Joaquin Castro
Member of Congress
Beto O'Rourke
Member of Congress
Filemon Vela
Member of Congress