President Biden cracks down on short-term health plans, calls them 'junk insurance'
President Biden is cracking down on Trump-era policies related to short-term health insurance plans as part of a broader plan to help curb the cost of healthcare in the United States.
On Friday the White House released a statement highlighting several of Biden’s proposed initiatives, which include restrictions on short-term health insurance plans, new rules related to surprise medical billing, investigations into the ethics of medical loans and more.
“Today, President Biden announced a series of new actions under a core pillar of his ‘Bidenomics’ agenda to lower health care costs and crack down on surprise junk fees for American families and consumers. Since the beginning of his Administration, President Biden has passed historic legislation to lower health care costs for tens of millions of Americans, took on Big Pharma to finally allow Medicare to negotiate lower prescription drug prices, and took action to eliminate hidden fees in every sector of the economy,” the statement reads.
Changes related to short-term insurance—or what the President refers to as “junk insurance”—include limits to the length of time a person can carry such coverage. The proposed rule would require that short-term plans are truly short-term and are active for just three months or four months if an extension is necessary. The rule also requires that plans provide a clear disclaimer about the coverage limitations of short-term insurance.
In 2018, President Trump expanded the maximum allowed duration of short-term policies to three years to offer consumers an affordable alternative to more comprehensive health plans. However, many of these plans do not cover some of the basic health essentials mandated in the Affordable Care Act and can end up costing consumers thousands of dollars out of pocket due to coverage limitations.
On a call with reporters ahead of the announcement, Neera Tanden, director of the White House Domestic Policy Council, stated that the new rules “will help make these plans fair and help ensure that consumers know what they’re getting when they sign up for insurance.”
If finalized, the proposed rule would apply to plans issued after the final rule’s effective date.
The full White House statement is available here.
In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She joined Innovate Healthcare in 2021 and has since put her unique expertise to use in her editorial role with Health Imaging.