Sen. King Urges Biden Administration to Limit 'Junk' Health Plans That Harm Maine People

WASHINGTON, Feb. 17 -- Sen. Angus S. King Jr., I-Maine, issued the following news release:

U.S. Senator Angus King (I-Maine) is calling for the Biden administration to limit the sale and availability of "junk" healthcare plans that offer inadequate coverage to Maine people. In a letter from King and 39 of his Senate colleagues to Department of Health and Human Services Secretary Xavier Becerra, the Senators call for the Administration to limit the sale and availability of short-term, limited-duration insurance (STLDI) "junk plans" because of their failure to provide long-term, comprehensive health insurance coverage.

"This year, 14.5 million Americans signed up for comprehensive health insurance coverage during Open Enrollment, a new record. Thanks to the American Rescue Plan, four out of five consumers who receive health insurance from the marketplace are finding quality coverage for less than $10 per month, and a majority of those enrollees are also receiving subsidies to decrease their co-pays, deductibles, and other out-of-pocket spending," began the Senators. "Despite the important gains that we have made in providing comprehensive and affordable coverage for more Americans, STLDI plans continue to sow confusion and cause harm to patients."

These plans, which are not required to adhere to important standards, including prohibitions on discrimination against people with pre-existing conditions, coverage for the 10 essential health benefit (EHB) categories, and annual out-of-pocket maximums, have continued to proliferate," continued the Senators. "STLDI plans undermine the integrity of the ACA and put those with pre-existing conditions at risk. The Department of Health and Human Services (HHS) should immediately restore the three-month duration limit for plans, limit plan renewability, and reduce the ability to purchase back-to-back STLDI plans."

"It is our responsibility to ensure that all Americans have access to affordable and comprehensive health care coverage. In order to strengthen that commitment, HHS must act quickly to limit the proliferation and promotion of STLDI plans, and undue the sabotage caused by the previous administration," the Senators conclude.

In 2018, in an effort to sabotage the Affordable Care Act (ACA) and diminish public faith in the marketplace, the Trump administration made junk plans more widely available to consumers. Since then, the plans have continued to proliferate, however, they are not required to adhere to important standards, including prohibitions on discrimination against people with pre-existing conditions, coverage for the 10 essential health benefit (EHB) categories, and annual out-of-pocket maximums.

Senator King has been a champion for affordable, accessible healthcare, and prevention healthcare policies across the board - including advocating for the long-term success of the Affordable Care Act. He lauded the decision of the Supreme Court (https://www.king.senate.gov/newsroom/press-releases/sen-king-statement-on-supreme-court-decision-upholding-the-aca) to uphold the law last year, and pushed for stronger federal assistance (https://www.king.senate.gov/newsroom/press-releases/king-pushes-to-lower-deductibles-and-out-of-pocket-expenses-easing-costly-burdens-of-healthcare) to reduce deductibles and out-of-pocket health care expenses for American families. King has also introduced the Primary and Behavioral Health Care Access Act (https://www.king.senate.gov/newsroom/press-releases/to-cover-an-ounce-of-prevention-senator-king-introduces-legislation-to-cover-regular-health-evaluations), which would require private insurance plans to cover three annual primary care visits and three annual outpatient mental health or outpatient substance use disorder treatment visits, without charging a copayment, coinsurance, or deductible-related fee.

Along with Senator King, the letter was signed by Senators Tammy Baldwin (D-WI), Chris Murphy (D-CT), Jeanne Shaheen (D-NH), Sherrod Brown (D-OH), Bob Casey (D-PA), Tim Kaine (D-VA), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Catherine Cortez Masto (D-NV), Tammy Duckworth (D-IL), Maggie Hassan (D-NH), Bob Menendez (D-NJ), Alex Padilla (D-CA), Tina Smith (D-MN), Chris Van Hollen (D-MD), Cory Booker (D-NJ), Ben Ray Lujan (D-NM), Elizabeth Warren (D-MA), Dianne Feinstein (D-CA), Jack Reed (D-RI), Patrick Leahy (D-VT), Debbie Stabenow (D-MI), Tom Carper (D-DE), Gary Peters (D-MI), Jacky Rosen (D-NV), Jon Tester (D-MT), Mark Warner (D-VA), Raphael Warnock (D-GA), Sheldon Whitehouse (D-RI), Mazie Hirono (D-HI), Ed Markey (D-MA), Ben Cardin (D-MD), Dick Durbin (D-IL), Jeff Merkley (D-OR), Jon Ossoff (D-GA), Chris Coons (D-DE), Charles Schumer (D-NY), John Hickenlooper (D-CO), and Bernie Sanders (I-VT).

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February 14, 2022

To: The Honorable Xavier Becerra, Secretary, Department of Health and Human Services, 200 Independence Ave SW, Washington, DC 20201

Dear Secretary Becerra:

This year, 14.5 million Americans signed up for comprehensive health insurance coverage during Open Enrollment, a new record. Thanks to the American Rescue Plan, four out of five consumers who receive health insurance from the marketplace are finding quality coverage for less than $10 per month, and a majority of those enrollees are also receiving subsidies to decrease their co-pays, deductibles, and other out-of-pocket spending. We write to congratulate you and your entire department for this significant achievement and encourage you to take additional steps to ensure that even more Americans are protected from substandard plans that do not provide coverage for pre-existing conditions. Now is the time to issue new regulations limiting the sale and availability of short-term, limited-duration insurance (STLDI) plans, also known as "junk plans" because of their failure to provide adequate coverage.

Despite the important gains that we have made in providing comprehensive and affordable coverage for more Americans, STLDI plans continue to sow confusion and cause harm to patients. These plans, which are not required to adhere to important standards, including prohibitions on discrimination against people with pre-existing conditions, coverage for the 10 essential health benefit (EHB) categories, and annual out-of-pocket maximums, have continued to proliferate. In 2018, the Trump administration issued a rule to sabotage the Affordable Care Act (ACA) by promoting STLDI plans and that same year all Senate Democrats and one Republican Senator voted to block the rule. Unfortunately, this effort to undermine critical patient and consumer protections has yet to be undone.

We were pleased to see the Biden administration include amending regulations concerning STLDI plans in the Fall 2021 Unified Agenda and Regulatory Plan, and are proud of the historic coverage gains that we have seen as a result of President Biden's and your leadership. However, it is past time for us to take action. STLDI plans undermine the integrity of the ACA and put those with pre-existing conditions at risk. The Department of Health and Human Services (HHS) should immediately restore the three-month duration limit for plans, limit plan renewability, and reduce the ability to purchase back-to-back STLDI plans. We also urge you to consider additional efforts to protect patients and consumers such as banning sales during Marketplace Open Enrollment, limiting internet and phone sales, establishing a prohibition on retroactive coverage rescissions, and requiring additional consumer disclosures about plan coverage.

It is our responsibility to ensure that all Americans have access to affordable and comprehensive health care coverage. In order to strengthen that commitment, HHS must act quickly to limit the proliferation and promotion of STLDI plans, and undue the sabotage caused by the previous administration.

View co-signers at https://www.baldwin.senate.gov/imo/media/doc/20220214%20%20STLDI%20Rules%20Letter%20to%20HHS%20signed.pdf