Biden declares war on 'junk' health insurance:
President tries to reverse dire approval ratings with crackdown on Trump-backed plans that last only three months and put 'stress' on families
The short-term plans were allowed to be used for three years under Trump
They don't follow Obamacare rules, so often leave people in medical debt
By NIKKI SCHWAB, SENIOR U.S. POLITICAL REPORTER FOR DAILYMAIL.COM
PUBLISHED: 7 July 2023 |
President Joe Biden has declared war on 'junk' health insurance policies and will announce new rules he's proposing in a speech Friday afternoon in the East Room.
The White House is taking aim at short-term health insurance policies that former President Donald Trump touted as 'much less expensive health care at a much lower price.'
However, those plans often don't provide comprehensive coverage, won't cover pre-existing conditions, don't cover prescription drugs and have saddled patients with thousands of dollars in medical bills.
'We know healthcare costs can be a real economic stress for families,' White House Domestic Policy Adviser Neera Tanden told reporters on a call Thursday night.
The announcement is part of a broader plan to curb household costs, as inflation has taken a toll on Americans' pocketbooks - and on the president's poll numbers.
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President Joe Biden, photographed speaking in South Carolina Thursday, will deliver a speech Friday afternoon on how his administration is going after 'junk' short-term health insurance plans
The Biden White House has also gone after excess fees charged by airlines, hotels and banks.
The so-called 'junk' insurance rules changed under Trump, who had wanted Congress to repeal the Affordable Care Act - the 2010 watershed healthcare bill dubbed 'Obamacare' - but was thwarted by Republican Sen. John McCain in July 2017.
One of McCain's reasons for preserving Obamacare was that Republicans hadn't come up with a way to replace it.
Cut to 2018 and the Trump administration worked to change the rules so that Americans could buy cheaper, short-term plans - meant to last three months - and keep them longer.
The idea was that these plans were not bound to the strict rules of the ACA, so the move was a work-around since Trump didn't have the votes in Congress to repeal Obamacare.
'Short term plans are intended to provide temporary coverage as people transition from one source of coverage to another like when we're between jobs,' Tanden explained.
Former President Donald Trump, had wanted to repeal Obamacare but didn't have the votes in Congress, so made tweaks to short-term insurance plans
'Under the previous administration, however, companies were allowed to take advantage of loopholes and sell what we call junk insurance for much longer than intended - up to three years,' she noted.
White House officials said on the call that those who currently have short-term plans would be able to keep them - and that the rule would impact sales of new plans.
Patients would also be made aware that their insurance was considered a 'junk' plan.
The Biden administration is also going after third-party medical credit cards, launching an intragovernmental probe into the emerging practice, Tanden said.
President Joe Biden is going after 'junk' health insurance plans
The short-term plans were allowed to be used for three years under Trump
They don't follow Obamacare rules, so often leave people in medical debt
By NIKKI SCHWAB, SENIOR U.S. POLITICAL REPORTER FOR DAILYMAIL.COM
PUBLISHED: 7 July 2023 |
President Joe Biden has declared war on 'junk' health insurance policies and will announce new rules he's proposing in a speech Friday afternoon in the East Room.
The White House is taking aim at short-term health insurance policies that former President Donald Trump touted as 'much less expensive health care at a much lower price.'
However, those plans often don't provide comprehensive coverage, won't cover pre-existing conditions, don't cover prescription drugs and have saddled patients with thousands of dollars in medical bills.
'We know healthcare costs can be a real economic stress for families,' White House Domestic Policy Adviser Neera Tanden told reporters on a call Thursday night.
The announcement is part of a broader plan to curb household costs, as inflation has taken a toll on Americans' pocketbooks - and on the president's poll numbers.
+2
View gallery
President Joe Biden, photographed speaking in South Carolina Thursday, will deliver a speech Friday afternoon on how his administration is going after 'junk' short-term health insurance plans
The Biden White House has also gone after excess fees charged by airlines, hotels and banks.
The so-called 'junk' insurance rules changed under Trump, who had wanted Congress to repeal the Affordable Care Act - the 2010 watershed healthcare bill dubbed 'Obamacare' - but was thwarted by Republican Sen. John McCain in July 2017.
One of McCain's reasons for preserving Obamacare was that Republicans hadn't come up with a way to replace it.
Cut to 2018 and the Trump administration worked to change the rules so that Americans could buy cheaper, short-term plans - meant to last three months - and keep them longer.
The idea was that these plans were not bound to the strict rules of the ACA, so the move was a work-around since Trump didn't have the votes in Congress to repeal Obamacare.
'Short term plans are intended to provide temporary coverage as people transition from one source of coverage to another like when we're between jobs,' Tanden explained.
Former President Donald Trump, had wanted to repeal Obamacare but didn't have the votes in Congress, so made tweaks to short-term insurance plans
'Under the previous administration, however, companies were allowed to take advantage of loopholes and sell what we call junk insurance for much longer than intended - up to three years,' she noted.
White House officials said on the call that those who currently have short-term plans would be able to keep them - and that the rule would impact sales of new plans.
Patients would also be made aware that their insurance was considered a 'junk' plan.
The Biden administration is also going after third-party medical credit cards, launching an intragovernmental probe into the emerging practice, Tanden said.
JULY 7, 2023 /
President Biden on Friday rolled out a new set of initiatives to reduce health care costs: a crackdown on scam insurance plans, new guidance to prevent surprise medical bills and an effort to reduce medical debt tied to credit cards.
Mr. Biden's remarks will build on previous initiatives to limit health care costs, with the Department of Health and Human Services releasing new estimates showing 18.7 million older adults and other Medicare beneficiaries will save an estimated $400 per year in prescription drug costs in 2025 because of the president placing a cap on out-of-pocket spending as part of last year's Inflation Reduction Act.
Gearing up for his 2024 reelection campaign as inflation remains a dominant concern for voters, the Democratic president has emphasized his policies to help families manage their expenses, as well as a spate of government incentives to encourage private sector development of electric vehicles, clean energy and advanced computer chips.
Republican lawmakers have criticized Mr. Biden's policies by saying they have spurred higher prices that hurt the well-being of families.
The Biden administration plans to limit what it calls "junk" insurance plans, such as short-term policies that can deny basic coverage as people transition between employers and still need temporary health care coverage.The hospital bills didn't find her, but a lawsuit did — plus interest
Neera Tanden, director of the White House Domestic Policy Council, highlighted the case of a man in Montana who received a $43,000 health care bill because his insurer said his cancer was a pre-existing condition.
"That's not real insurance — that's junk insurance," Tanden told reporters on a phone call previewing the president's remarks. "We will propose a rule to crack down on these plans."
The president also announced new guidance on medical billing stemming from 2020's No Surprises Act. The guidance would limit the ability of insurers that contract with hospitals to claim provided care was not in network and have customers pay more money. Health plans also would need to disclose facility fees that are increasingly charged to patients and can surface as an unexpected cost in a medical bill.
"Frankly, what they are doing is gaming the system — this is not allowed," Tanden said.At least 1.7 million Americans use health care sharing plans, despite lack of protections
The Consumer Financial Protection Bureau and Treasury Department also are seeking information on third-party credit cards and loans that are specifically used to pay for health care. The higher costs and interest charges can discourage people in need of treatment from seeking care.
The president is expected to also highlight previous efforts to reduce health care costs, including a plan allowing Medicare to negotiate lower prices for prescription drugs and a $35 monthly price cap on insulin for people in Medicare Part B.
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