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Health insurers are blasting an effort by conservatives to modify the Senate Obamacare repeal bill and set up a two-tier market in which companies could sell plans that don’t meet Obamacare’s coverage requirements. Their big concern, according to documents obtained by POLITICO: The plan by Ted Cruz and Mike Lee would threaten access to coverage for individuals with costly medical conditions. (Demko, 7/12)

The main health insurer trade group is warning Senate Republicans against including a controversial conservative amendment in their healthcare bill, saying the move would destabilize the market and harm coverage for people with pre-existing conditions. America's Health Insurance Plans (AHIP) warns in a position paper obtained by The Hill that the proposal from Sens. Ted Cruz (R-Texas) and Mike Lee (R-Utah) would cause people with pre-existing conditions to “potentially lose access to comprehensive coverage and/or have plans that were far more expensive, as premiums in the Exchange market would rise much faster than under existing market conditions.” (Sullivan, 7/12)

Health insurance lobbying groups are raising concerns about a proposed amendment to the Senate health care bill, warning that a proposal from Sen. Ted Cruz would destabilize and fracture the individual insurance market. The Texas Republican is pushing to allow insurers to sell policies on the federal exchanges that don’t meet the regulations laid out in the 2010 health care law (PL 111-148, PL 111-152), so long as an insurer offers one plan that does comply with the law. (McIntire, 7/12)

AHIP’s cautious opposition was not enough to sink the House-passed version of the bill to repeal and replace the ACA, but the group’s skepticism may hold more weight with senators, who are awaiting the Congressional Budget Office’s cost estimate of the market impact of Cruz’s amendment. Senate GOP leaders are hoping to vote on revised legislation next week. (Reid, 7/12)