Post by Sysop3 on Aug 12, 2018 22:53:05 GMT -5
The Trump administration's new policy of expanding the sale of “short-term” insurance plans as a cheaper alternative to ObamaCare is quickly running into opposition from state regulators.
he Department of Health and Human Services is urging states to cooperate with the federal government, but instead, insurance commissioners are panning the new plans as "junk” insurance and state legislatures are putting restrictions on their sales.
State insurance officials argue that, despite being less expensive than ObamaCare plans, the short-term plans are bad for consumers and aren't an adequate substitute for comprehensive insurance.
“These policies are substandard, don’t cover essential health benefits, and consumers at a minimum don’t understand [what they’re buying], and at worse are misled,” California Insurance Commissioner Dave Jones (D) said.
States also fear the availability of short-term plans will drive up premium costs for ObamaCare.
Insurers have argued that allowing plans to operate outside ObamaCare can essentially create a secondary market. The market for the short-term plans they worry will siphon healthy people away from ObamaCare.
“The individuals who are able to access these plans, those willing to take the risk, they won’t have significant needs, they will be disproportionately healthy, so that will lead to a more expensive individual market, and will drive up prices for those who need it,” said Jessica Altman, the insurance commissioner in Pennsylvania.
Earlier this month, the administration finalized rules that would allow people to buy short-term health insurance for up to 12 months, lifting restrictions from the Obama administration limiting such plans from offering coverage for more than three months. The plans would also be renewable.
The short-term plans don’t need to meet ObamaCare’s consumer protections, so they would potentially be much cheaper than a traditional plan. Administration officials say the short-term plans will be as much as 50 to 80 percent cheaper than ObamaCare plans.
But the tradeoff is that people with pre-existing conditions can be charged more. In addition, the plans to do not have to comply with ObamaCare mandates for covering certain services, such as mental health treatment, maternity care or prescription drugs.
Trump officials have touted the plans as an improvement for consumers. But now officials find themselves struggling to get states on board.
This week, Health and Human Services Secretary Alex Azar publicly urged states to cooperate with the Trump administration.
During a speech to conservative state legislators, Azar argued short-term plans can provide a viable, cheaper option for people priced out of ObamaCare plans— but only as long as states don’t restrict them.
"This affordable option will only be as available as state legislators and insurance commissioners allow it to be," Azar said.
“We believe sensible state regulation of these plans is important," Azar said. "But millions of Americans are in need of affordable insurance options, and states can help build this market outside of Obamacare’s broken regulations.”
he Department of Health and Human Services is urging states to cooperate with the federal government, but instead, insurance commissioners are panning the new plans as "junk” insurance and state legislatures are putting restrictions on their sales.
State insurance officials argue that, despite being less expensive than ObamaCare plans, the short-term plans are bad for consumers and aren't an adequate substitute for comprehensive insurance.
“These policies are substandard, don’t cover essential health benefits, and consumers at a minimum don’t understand [what they’re buying], and at worse are misled,” California Insurance Commissioner Dave Jones (D) said.
States also fear the availability of short-term plans will drive up premium costs for ObamaCare.
Insurers have argued that allowing plans to operate outside ObamaCare can essentially create a secondary market. The market for the short-term plans they worry will siphon healthy people away from ObamaCare.
“The individuals who are able to access these plans, those willing to take the risk, they won’t have significant needs, they will be disproportionately healthy, so that will lead to a more expensive individual market, and will drive up prices for those who need it,” said Jessica Altman, the insurance commissioner in Pennsylvania.
Earlier this month, the administration finalized rules that would allow people to buy short-term health insurance for up to 12 months, lifting restrictions from the Obama administration limiting such plans from offering coverage for more than three months. The plans would also be renewable.
The short-term plans don’t need to meet ObamaCare’s consumer protections, so they would potentially be much cheaper than a traditional plan. Administration officials say the short-term plans will be as much as 50 to 80 percent cheaper than ObamaCare plans.
But the tradeoff is that people with pre-existing conditions can be charged more. In addition, the plans to do not have to comply with ObamaCare mandates for covering certain services, such as mental health treatment, maternity care or prescription drugs.
Trump officials have touted the plans as an improvement for consumers. But now officials find themselves struggling to get states on board.
This week, Health and Human Services Secretary Alex Azar publicly urged states to cooperate with the Trump administration.
During a speech to conservative state legislators, Azar argued short-term plans can provide a viable, cheaper option for people priced out of ObamaCare plans— but only as long as states don’t restrict them.
"This affordable option will only be as available as state legislators and insurance commissioners allow it to be," Azar said.
“We believe sensible state regulation of these plans is important," Azar said. "But millions of Americans are in need of affordable insurance options, and states can help build this market outside of Obamacare’s broken regulations.”
more
thehill.com/policy/healthcare/401351-states-fight-trump-on-non-obamacare-health-plans
he Department of Health and Human Services is urging states to cooperate with the federal government, but instead, insurance commissioners are panning the new plans as "junk” insurance and state legislatures are putting restrictions on their sales.
State insurance officials argue that, despite being less expensive than ObamaCare plans, the short-term plans are bad for consumers and aren't an adequate substitute for comprehensive insurance.
“These policies are substandard, don’t cover essential health benefits, and consumers at a minimum don’t understand [what they’re buying], and at worse are misled,” California Insurance Commissioner Dave Jones (D) said.
States also fear the availability of short-term plans will drive up premium costs for ObamaCare.
Insurers have argued that allowing plans to operate outside ObamaCare can essentially create a secondary market. The market for the short-term plans they worry will siphon healthy people away from ObamaCare.
“The individuals who are able to access these plans, those willing to take the risk, they won’t have significant needs, they will be disproportionately healthy, so that will lead to a more expensive individual market, and will drive up prices for those who need it,” said Jessica Altman, the insurance commissioner in Pennsylvania.
Earlier this month, the administration finalized rules that would allow people to buy short-term health insurance for up to 12 months, lifting restrictions from the Obama administration limiting such plans from offering coverage for more than three months. The plans would also be renewable.
The short-term plans don’t need to meet ObamaCare’s consumer protections, so they would potentially be much cheaper than a traditional plan. Administration officials say the short-term plans will be as much as 50 to 80 percent cheaper than ObamaCare plans.
But the tradeoff is that people with pre-existing conditions can be charged more. In addition, the plans to do not have to comply with ObamaCare mandates for covering certain services, such as mental health treatment, maternity care or prescription drugs.
Trump officials have touted the plans as an improvement for consumers. But now officials find themselves struggling to get states on board.
This week, Health and Human Services Secretary Alex Azar publicly urged states to cooperate with the Trump administration.
During a speech to conservative state legislators, Azar argued short-term plans can provide a viable, cheaper option for people priced out of ObamaCare plans— but only as long as states don’t restrict them.
"This affordable option will only be as available as state legislators and insurance commissioners allow it to be," Azar said.
“We believe sensible state regulation of these plans is important," Azar said. "But millions of Americans are in need of affordable insurance options, and states can help build this market outside of Obamacare’s broken regulations.”
he Department of Health and Human Services is urging states to cooperate with the federal government, but instead, insurance commissioners are panning the new plans as "junk” insurance and state legislatures are putting restrictions on their sales.
State insurance officials argue that, despite being less expensive than ObamaCare plans, the short-term plans are bad for consumers and aren't an adequate substitute for comprehensive insurance.
“These policies are substandard, don’t cover essential health benefits, and consumers at a minimum don’t understand [what they’re buying], and at worse are misled,” California Insurance Commissioner Dave Jones (D) said.
States also fear the availability of short-term plans will drive up premium costs for ObamaCare.
Insurers have argued that allowing plans to operate outside ObamaCare can essentially create a secondary market. The market for the short-term plans they worry will siphon healthy people away from ObamaCare.
“The individuals who are able to access these plans, those willing to take the risk, they won’t have significant needs, they will be disproportionately healthy, so that will lead to a more expensive individual market, and will drive up prices for those who need it,” said Jessica Altman, the insurance commissioner in Pennsylvania.
Earlier this month, the administration finalized rules that would allow people to buy short-term health insurance for up to 12 months, lifting restrictions from the Obama administration limiting such plans from offering coverage for more than three months. The plans would also be renewable.
The short-term plans don’t need to meet ObamaCare’s consumer protections, so they would potentially be much cheaper than a traditional plan. Administration officials say the short-term plans will be as much as 50 to 80 percent cheaper than ObamaCare plans.
But the tradeoff is that people with pre-existing conditions can be charged more. In addition, the plans to do not have to comply with ObamaCare mandates for covering certain services, such as mental health treatment, maternity care or prescription drugs.
Trump officials have touted the plans as an improvement for consumers. But now officials find themselves struggling to get states on board.
This week, Health and Human Services Secretary Alex Azar publicly urged states to cooperate with the Trump administration.
During a speech to conservative state legislators, Azar argued short-term plans can provide a viable, cheaper option for people priced out of ObamaCare plans— but only as long as states don’t restrict them.
"This affordable option will only be as available as state legislators and insurance commissioners allow it to be," Azar said.
“We believe sensible state regulation of these plans is important," Azar said. "But millions of Americans are in need of affordable insurance options, and states can help build this market outside of Obamacare’s broken regulations.”
more
thehill.com/policy/healthcare/401351-states-fight-trump-on-non-obamacare-health-plans