Trump Eases Limits On Short-Term Plans That Critics Call ‘Junk Insurance’ In Latest Blow To Health Law
Short-term policies are intended for people who are between jobs, and are generally cheaper than insurance that meets the law’s requirements. But they offer significantly less protection to consumers. House Minority Leader Nancy Pelosi (D-Calif.) said people buying these plans could be “one diagnosis away from disaster, discovering they have been paying for coverage that may not cover basic care such as cancer treatment.”
The New York Times:
Trump Moves To Relax Rules On Cheaper Health Insurance
The Trump administration took another swipe at the Affordable Care Act on Tuesday, proposing new rules that would make it much easier for consumers to buy less expensive health insurance policies that do not comply with coverage requirements of the law. Under current rules, such “short-term, limited-duration insurance” cannot last for more than three months. Under the proposal, the limit would be 364 days. (Pear, 2/20)
The Associated Press:
Trump Plan: Less Health Insurance For Lower Premiums
The proposed regulations would expand an alternative to the comprehensive medical plans required under former President Barack Obama's health law. Individuals could buy so-called "short-term" policies for up to 12 months. But the coverage would omit key consumer protections and offer fewer benefits, making it unattractive for older people or those with health problems. The plans would come with a disclaimer that they don't meet the Affordable Care Act's safeguards, such as guaranteed coverage, ten broad classes of benefits, and limits on how much older adults have to pay. Insurers could also charge more if a consumer's medical history discloses health problems. (Alonso-Zaldivar, 2/20)
Kaiser Health News:
Trump Administration Proposes Rule To Loosen Curbs On Short-Term Health Plans
The new rule is expected to entice younger and healthier people from the general insurance pool by allowing a range of lower-cost options that don’t include all the benefits required by the federal law — including plans that can reject people with preexisting medical conditions. Most short-term coverage excludes benefits for maternity care, preventive care, mental health services or substance abuse treatment. (Appleby, 2/20)
The Washington Post:
Short-Term Health Plans Skirting ACA-Required Benefits And Protections To Be Expanded
“It’s one step in the direction of providing Americans with health insurance options that are both more affordable and more individualized for families’ circumstances,” Azar said in a conference call with reporters to announce the proposed rule. Seema Verma, administrator of the Centers for Medicare and Medicaid Services, echoed that portrayal of the rewrite as health reform. “While in the past these plans have been a bridge, now they can be a lifeline,” she said. (Goldstein, 2/20)
Modern Healthcare:
Trump Administration To Expand Access To Short-Term Insurance Without ACA Protections
With the proposal, the HHS said it is targeting the nearly 28 million people who are uninsured. "There are healthy people who are sitting on the sidelines without coverage and this is an opportunity to provide them an opportunity for coverage whereas right now they might not have that," Verma said. (Livingston, 2/20)
NPR:
The Trump Administration Wants To Allow Insurance Plans That Don't Meet Obamacare Standards
Under the Affordable Care Act, or Obamacare, short-term plans can last up to three months. But the Trump administration wants to extend that time limit to a year, or more. "In 2008, one of the important policy motivators for what ultimately became the ACA was protecting people from so-called mini-med plans that provided coverage in name only," says Rodney Whitlock, a health care consultant with ML Strategies who worked as a Republican staffer on the Senate Finance Committee when the Affordable Care Act was written. "But in a world without the individual mandate, short-term health plans make perfect sense. Now people who have no utilization can go out and buy coverage with no benefits." (Kodjak, 2/20)
The Wall Street Journal:
Health Proposal Would Loosen Limits On Short-Term Insurance
Republicans say allowing the extension of short-term plans would lower premiums by fostering competition and giving consumers more choices. Critics say it would allow for the sale of “junk” plans that have limited benefits and have been subject to fraud in the past, returning the market to the days before the ACA. “Bottom line: This is a green light to discriminate against Americans with pre-existing conditions that’s going to make quality health insurance more expensive and less accessible,” said Oregon’s Ron Wyden, the top Democrat on the Senate Finance Committee, which oversees many health-care issues. (Armour, 2/20)
Politico:
Trump Proposal Boosts Skimpy Insurance Plans, Again Undercutting Obamacare
“The way that you get to lower premiums is to reduce benefits,” said Kevin Lucia, a professor at Georgetown University’s Center on Health Insurance Reforms. “It’s a quick fix, but ultimately those products don’t help consumers who need them.” (Demko, 2/20)
Los Angeles Times:
Trump Administration Takes New Steps To Loosen Health Insurance Rules
Among the other leading patient groups that condemned the proposed new rules are the American Heart Assn., the American Lung Assn., the Arthritis Foundation, Consumers Union, the Cystic Fibrosis Foundation, the Leukemia and Lymphoma Society and the March of Dimes. The administration is already under fire for proposing last month to make it easier for self-employed Americans, small businesses and others to band together to get health insurance through what are called association health plans. Association plans do not have to offer a comprehensive set of so-called essential health benefits, a key requirement of the 2010 health law. (Levey, 2/20)
Bloomberg:
Trump Proposes Bigger Role For Skimpy Insurance, Undermining Obamacare
UnitedHealth Group Inc., the biggest U.S. health insurer, already offers short-term coverage, and has said it would explore expanding offerings. Two major industry lobby groups, America’s Health Insurance plans and the Blue Cross Blue Shield Association, have warned that the short-term plans could harm state insurance markets. (Tracer, 2/20)
The Hill:
Dems Decry ObamaCare Change As New Attempt At 'Sabotage'
Three high-ranking Democrats blasted the Trump administration’s move Tuesday to expand access to plans that don’t meet ObamaCare’s requirements, calling it the “latest step” in the White House’s “effort to sabotage our nation’s healthcare system.” The Department of Health and Human Services (HHS) announced a proposed rule Tuesday that would increase the maximum length of short-term health plans from less than three months to nearly a year. The three-month limit had been set by the Obama administration. (Roubein, 2/20)
In other health law news —
Politico:
Trump IRS Seeks Millions In Obamacare Fines Even Though Law Is 'Dead'
Hundreds of companies face prospective fines for violating Obamacare’s employer mandate by the same Trump administration that has done virtually everything in its power to abolish the federal health care law. Internal Revenue Service notices recently began arriving in corporate mailboxes, in some cases demanding millions of dollars in fines — an awkward development as the White House touts its business-friendly tax package. The notices will likely spur another legal fight over the health law — this time featuring the administration defending a statute that President Donald Trump has repeatedly declared dead. (Demko and Haberkorn, 2/20)
Politico Pro:
Azar: No States Have Asked HHS About Idaho Plan
HHS Secretary Alex Azar said he’s not aware of any other states that are looking to copy Idaho's plan to let health insurers skirt the Affordable Care Act's coverage requirements. Azar also said he’s had no discussions with Idaho officials about their plan, which many legal experts believe violates federal law. Azar has said it would be premature to comment on Idaho's move. (Demko, 2/20)
