Senate passes bill promising cheaper health care. Why are so many people against it?
A proposal to give North Carolinians cheaper options for health care coverage cleared the state
The bill, which would allow certain nonprofit organizations to offer health benefit plans, could be voted on in the House as early as Thursday evening.
Those who support the bill, including the
Opponents say allowing such plans will let the
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"For the folks who are struggling now, it will only get worse," said
Health benefit plans are controversial because they allow the organizations to reject applicants with cancer or other pre-existing conditions, or charge older or seriously ill people much higher fees. These plans also can cap lifetime financial benefits and, because they are not regulated, are not required to meet financial solvency requirements that guarantee they will have sufficient funds to pay customers' medical bills. They also don't have to cover mental health benefits or preventive health services, unlike health insurance regulated under the ACA.
Such plans were largely outlawed as "junk" insurance by the ACA, which passed
On Thursday, the
"Maserati may not refuse to sell me a car but it makes no difference if I can't afford it," Riley said. "People with pre-existing conditions can still be priced out of coverage."
Under the bill, only organizations that have been in existence for a decade and have statewide memberships would be eligible to offer the health benefit plans that would compete with health insurance. But because anyone can join some of these organizations it raises the prospect that thousands of people would become members for the cheaper health benefits. An annual membership in the
Hise said this week that health benefit plans are much-needed for people "who are forced into not having insurance because they can't afford
Opponents of the bill include the March of Dimes,
"It is important to ensure that a product that is not regulated by the State protects against potential risks such as inadequate coverage and insufficient capitalization,"
"When you have a
The provision passed as part of House Bill 933, which deals with licensing school psychologists. The health benefits provision was added by the
Only two states allow nonprofits to sell membership health benefit organizations.
The
Most people covered under the ACA, including nearly 520,000 in
The bill doesn't directly affect the majority of people who buy their health insurance through an employer or from Medicare or Medicaid.
"We can provide some relief to some of our members who are basically trapped," Wooten said. "I've got horror story after horror story from our farm members."
Wooten said the
"This is not going to be cheap health insurance," Wooten said. "What we're doing has got to be actuarially sound, capitalized, and on and on.
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