Washington, D.C.,—Senator Tammy Baldwin (D-Wis.) has introduced a resolution under the Congressional Review Act that would prevent the extension and expansion of short-term limited duration health insurance plans (STLD) as allowed under a new rule from the Departments of Health and Human Services (HHS) and Treasury. The rule, which was finalized August 1, allows insurers to issue – for up to 36 months – so-called short-term health insurance plans. Insurers can deny or charge people more for these plans based on their health status, are not required to cover essential health services, like prescription drugs and can charge older people more than three times what they charge a younger person for the same coverage.
Previously these policies were intended as “bridge” coverage to provide temporary insurance coverage for no more than three months.
A statement from Chris Hansen, president of the American Cancer Society Cancer Action Network (ACS CAN) follows:
“Senator Baldwin’s effort today is another avenue by which lawmakers can and should take action to protect health care coverage for cancer patients, survivors and all those with serious medical conditions.
“The final short-term health plan rule threatens to split the insurance market and weaken critical patient protections. These short-term plans will be able to charge people more for coverage based on their pre-existing conditions or deny them coverage outright. The plans will be able to set limits on how much they’ll pay for certain services or refuse to cover some services —like innovative cancer treatments or prescription drugs—all together. While this will likely result in lower monthly premiums it will also leave enrollees with potentially inadequate health coverage if they are diagnosed with an unexpected illness like cancer. It will also make it more expensive for people who need comprehensive health insurance to afford it as healthier people are siphoned out of the market into these bare bone plans.
“ACS CAN along with more than 100 other patient, provider and consumer groups repeatedly raised serious concerns with HHS over this rule and what it would mean for people with pre-existing and serious medical conditions. We remain alarmed at the potential damage these changes could have on the individual insurance market and to millions of American cancer patients and survivors’ ability to access meaningful health coverage.
“We urge Congress to support this resolution and take immediate action to protect patients and the insurance market. If they fail to act, we encourage states to pass state laws restricting or prohibiting these potentially damaging products. Cancer patients and survivors must have access to high-quality, affordable insurance that provides comprehensive coverage, and ACS CAN stands ready to work with all lawmakers in this effort.”