Sen. Rosen, Colleagues Urge Biden Administration to Bolster Pre-Existing Conditions Protections by Limiting Junk Health Plans

WASHINGTON, Feb. 16 -- Sen. Jacky Rosen, D-Nevada, issued the following news release on Feb. 15, 2022:

U.S. Senator Jacky Rosen (D-NV), a member of the Senate Committee on Health, Education, Labor and Pensions (HELP), joined her Senate colleagues in sending a letter to Secretary of Health and Human Services Xavier Becerra urging the Biden administration to limit the sale of short-term, limited-duration insurance (STLDI) plans, also known as "junk plans" because of their failure to provide adequate, comprehensive health insurance coverage. These plans can deny coverage to people with pre-existing conditions and are not required to cover essential services like maternity care, prescription drugs, mental health services, and emergency room care. Senator Rosen joins Senators Tammy Baldwin (D-WI), Chris Murphy (D-CT), Jeanne Shaheen (D-NH), Catherine Cortez Masto (D-NV), and 35 other Senators in sending this letter.

"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," the Senators wrote. "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."

In 2018, in an effort to sabotage the Affordable Care Act, the Trump administration made junk plans more widely available to consumers. Since then, the plans have continued to proliferate.

Throughout her time in office, Senator Rosen has been a champion for protecting the Affordable Care Act and its provisions to protect individuals with pre-existing conditions and lower health care costs. In one of her first actions in the Senate, Senator Rosen helped introduce a resolution (https://www.rosen.senate.gov/rosen-helps-introduce-senate-resolution-defend-constitutionality-aca) to authorize Senate Legal Counsel to intervene in Texas v. United States on behalf of the U.S. Senate, in order to defend the Affordable Care Act and its protections for people with pre-existing conditions. Senator Rosen also previously co-sponsored legislation (https://www.rosen.senate.gov/rosen-co-sponsors-bill-improve-aca-extending-affordable-health-coverage-families) to block the Trump Administration's rule expanding short-term junk health insurance plans that do not include protections for pre-existing conditions or provide essential health benefits.

Last Congress, Senator Rosen co-sponsored the Family Coverage Act (https://www.rosen.senate.gov/rosen-co-sponsors-bill-improve-aca-extending-affordable-health-coverage-families), legislation that would amend the Affordable Care Act (ACA) to provide tax credits to offset the cost of health insurance to spouses and children when an individual's employer-sponsored coverage is not affordable for their family.

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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