(The Center Square) - With about eight weeks until federally subsidized health insurance premiums expire, at least one Republican legislator in California is voicing concern about the issue that is the main crux of the ongoing government shutdown.
“This is something that I think is part of a government-created problem, and the government injecting itself into all these realms of the economy actually create an issue,” Assemblymember David Tangipa, R-Fresno, told The Center Square. “They drive up pressure on the market. We’ve got to spur innovation, and we’ve got to allow other industries to come in and challenge these corporations and industries that are driving insurance costs.”
Removing the government from the equation and allowing the health insurance market to remain just that - a market, not a service floated by the government -- is the best way to offer affordable insurance to taxpayers, Tangipa told The Center Square.
“These insurance companies know that if they jack up prices to $5,000, $10,000, $6,000, whatever it is, people are just not going to buy it,” Tangipa told The Center Square. “And if they [customers] don’t buy it, they will have to fix it. This is where capitalism comes in the best. If those insurance companies that are institutional can’t fix it, innovative ones will come in and replace it.”
That hope might be substantiated. Despite a reputation for being conservative and risk-averse, the insurance industry is starting to see more efforts to develop innovative new solutions to consistent problems in the insurance industry.
“For a notoriously conservative industry, the pace of innovation has accelerated markedly in recent years,” reads a report from Insurance Insider. “Insurers have prioritized new ways to engage with customers, respond to changing preferences, and extract more value from data. Innovation in the insurance industry is happening across the distribution chain and in every business function.”
Officials from the California Department of Insurance and employees from the Association of California Life & Health Insurance Companies did not respond on Friday.
The ongoing shutdown, caused primarily by a failure of Democrats and Republicans to come to an agreement on a funding resolution that would include the extension of pandemic-era subsidies on health insurance premiums, is starting to have severe consequences. This week, the Federal Aviation Administration announced a 10% reduction in commercial flights at 40 major airports across the country, including several in California. That followed many losing their benefits through the federally-funded Supplemental Nutrition Assistance Program, or SNAP, known as CalFresh in the Golden State. Congressional Republicans from California have also spoken out about the impact of the federal shutdown.
“This isn’t politics - it’s people’s livelihoods,” said U.S. Rep. Vince Fong, R-Bakersfield, in a video message released last month about the government shutdown. “Senate Democrats must act now to reopen the government.”
Officials with the California Department of Health Care Services, which manages California’s version of Medicaid, Medi-Cal, said the shutdown so far is not affecting Medi-Cal recipients’ ability to access health care. Officials add that's unlikely to happen between now and the end of the year.
“Some federal activities, like grant approvals or reporting, might be delayed during a shutdown, but these delays will not affect Medi-Cal members’ coverage,” Anthony Cava, media relations manager for the California Department of Health Care Services, wrote in an email to The Center Square. “At this time, there are no immediate disruptions to Medi-Cal services resulting from the federal government shutdown. The federal budget includes full funding for Medi-Cal through December 2025, ensuring continued access to health care services for eligible Californians.”
According to Cava, Medi-Cal provides health coverage to more than 14 million people in the state.
“The Department of Health Care Services continues to monitor the situation closely,” Cava wrote to The Center Square. “An extended shutdown could potentially impact the program.”
In addition to Tangipa, Center Square reached out to several Republican legislators Friday. They weren't available for comment.
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