Ban health insurance that doesn’t cover pre-existing conditions? Jerry Brown to decide
New federal rules, finalized
Under Obamacare, the short-term plans were allowed for three months, primarily to cover consumers transitioning between coverage. The new Trump administration rule, blasted by
A
"These plans can bankrupt people," Hernandez said. "They don't have the protections of the Affordable Care Act. They're junk. It's a huge threat."
Other states, including
The move to ban such plans is part of a broad effort under way, at the state level, to blunt actions by the Trump administration to unravel the federal health care law after President
Brown is also considering bills that would prohibit low-income people on
The proposals are a direct response to actions taken by the Trump administration, said
"These are threats to our health care system that we aim to prevent," Wright said. "These junk insurance plans, whether through so-called short-term insurance or through association health plans, leave people at risk of being uncovered for what they actually need, and they also threaten to destabilize the market and spike premium rates."
Curious about what's happening at the
So are we. Every day, reporters at
* We explain how
* We hold
* We deliver crystal clear, vital information to help inform how you might vote on specific issues or candidates.
Stay informed. Take advantage of a
CLICK TO SUBSCRIBE
The Trump administration argues the plans provide consumer choice. "This will create tremendous competition," Trump said last year.
Federal regulators say insurers selling short-term plans are not required to comply with the broad scope of benefits required to be covered under Obamacare.
"Short-term, limited-duration insurance is not subject to the requirement to provide essential health benefits and is not subject to the prohibitions on pre-existing condition exclusions or lifetime and annual dollar limits," federal regulators wrote in the rule expanding short-term plans.
The number of Californians enrolled in short-term plans has fallen in recent years, state insurance regulators said. At present, there are roughly 10,000 policies in effect, according to an analysis by
Researchers said without state action, enrollment would likely grow, with an estimates at more than 600,000 people potentially signing up for short-term plans. That could lead young, healthy people to leave the Covered California market, threatening greater premium spikes.
"If these were allowed, we'd see insurers aggressively make their play," Wright said. He said if
But for some, short-term plans purchased outside of authorized enrollment periods offer needed relief, said
"Unlike the Trump administration, we don't think these are great plans, and in many ways we're not huge supporters, but getting rid of these types of plans could leave some people uncovered in emergencies," Fear Jr. said.
He said, for example, that he sold a short-term plan recently to a consumer who wasn't paying attention or checking his mail, and he missed his regular enrollment period.
"He was going on a motorcycle trip and he wanted to make sure he was covered," Fear Jr. said. "I was able to sell him one of these short-term plans for 90 days that would cover his trip."
Hernandez says Californians will be better off without them.
"I want to make sure we continue to lead the country in the implementation of the Affordable Care Act," he said. "I think all these bills maintain the stability of our health care market."
These are the bills currently on Brown's desk:
Senate Bill 910: Would prohibit insurers from selling, renewing or offering short-term health plans in
Senate Bill 1108: Would allow
Senate Bill 1375: Would prohibit individuals from forming "association health plans," which are not required to comply with Obamacare coverage mandates.
Assembly Bill 2499: Would require health plans to spend at least 80 percent of premium dollars on health care. The Trump administration has floated increasing the ratio insurers are allowed to spend on profits and administrative care.
___
(c)2018 The Sacramento Bee (Sacramento, Calif.)
Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com
Distributed by Tribune Content Agency, LLC.
Washington has underfunded efforts to control wildfire burning, despite smothering smoke
SC’s Graham lays out how Trump’s Supreme Court pick could overturn Roe v. Wade
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News