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March 02, 2012 12:00 AM

Camp questions jump in exchange subsidies

Jessica Zigmond
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    In a letter, the chairman of the House Ways and Means Committee asked Treasury Secretary Timothy Geithner to explain why the Obama administration's budget includes a 30% increase in subsidies for health insurance exchanges over last year's budget.

    The letter from Rep. Dave Camp (R-Mich.) (PDF), chairman of the tax panel that has jurisdiction over Medicare, said a comparison of the budget tables from the fiscal 2012 and 2013 budgets showed an increase of about $111 billion for the same period: 2014-2021.

    “This staggering increase in health insurance exchange subsidy spending cannot be explained by legislative changes or new economic assumptions, and therefore must reflect substantial changes in underlying assumptions regarding the program's utilization and costs,” the letter said.

    Camp raised the issue earlier in the week with HHS Secretary Kathleen Sebelius, who testified before his committee about the administration's fiscal year 2013 budget. As Camp noted in his letter to Geithner, Sebelius said she was not aware of the 30% increase and asked that he send her the question in writing.

    In his correspondence, Camp said a general reference to “technical assumptions” as a reason for the increase would be considered unresponsive. “If such corrections are part of the $111 billion increase, please specify, in detail, the exact ‘assumptions' that changed in the FY 2013 budget proposal, and what financial impact each change ‘in assumption' had on spending projections,” the letter noted.

    Camp has requested a response to his letter by March 5.

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