Photo: Jose Luis Pelaez Inc./Getty Images
Democrats in the House of Representatives are calling on the Department of Health and Human Services to end the so-called “junk program.”
A group of 42 House Democrats sent a letter to HHS requesting the department to take immediate action to curb the expansion of short-term limited-time insurance (STLDI) plans, commonly known as junk plans. ..
These plans are not aimed at long-term, comprehensive coverage, do not need to comply with the critical consumer protection of the Affordable Care Act, refuse to cover existing conditions and limit benefits. , You can claim different premiums based on your age and health.
The letter urges HHS Secretary Xavier Becerra to overturn the final rule issued by the Trump administration to extend the short-term, limited-term plan and return it to its intended purpose as short-term temporary compensation. I’m looking for it.
Traditionally, short-term plans cover up to 3 months and cannot be renewed.
They were designed to provide temporary compensation to individuals transitioning between health policies, such as individuals between work or students taking a semester off school.
What is the impact
The Obama administration has limited the duration of the STLDI program to less than three months. However, in 2018, the Trump administration announced final rules that would allow individuals to purchase STLDI plans for up to one year, covering up to three years of renewable energy.
Democrats argue that short-term insurance plans do not provide meaningful coverage and that continuing to allow long-term use of these plans is not beneficial to patients.
It also leaves patients and consumers vulnerable to physical and financial harm by relying on practices such as exclusion of existing conditions and refusal of retroactive compensation that were common before the passage of ACA. May be.
An analysis of the STLDI plan found that 43% of the plans surveyed could not cover mental health services, 71% did not cover outpatient prescription drugs, and had no plans to cover maternity care. ..
Big trend
In 2020, the Court of Appeals endorsed the sale of a short-term insurance plan upheld by the Trump administration. The court said the sale of short-term limited-time insurance plans was neither unlawful nor arbitrary and capricious.
On record
“Junk plans pose an obvious risk to consumers, undermine ACA’s strengths and are incompatible with the goal of making high-quality health insurance affordable for all Americans,” the letter said. Says. “We are revising the 90-day limit of STLDI plans for HHS, reducing the ability to renew STLDI plans, and being directed to STLDI when consumers are looking for traditional health insurance plans. We urge you to take delinquency measures to double your efforts to protect.
Twitter: @ dropdeaded209
Send an email to the writer: nathaneddy@gmail.com
