A federal judge on July 19 upheld the Trump administration’s expansion of health insurance plans that don’t meet the Affordable Care Act (ACA) coverage requirements, bringing swift reaction from democrats opposing the short-term care plans as “junk insurance.”
U.S. District Judge Richard Leon in Washington ruled against the insurance companies that sued the administration in an attempt to block the new rules, which took effect in October 2018.
“Not only is any potential negative impact from the 2018 rule minimal, but its benefits are undeniable,” Leon wrote in a 40-page ruling about the regulations.
The Trump administration issued a regulation last year allowing short-term health care plans to last up to 364 days instead of just three months, and can be renewed for three years. The plans were originally intended as an option for individuals who need to bridge a gap in health insurance coverage rather than as a longer-term solution.
The Trump administration extended the length of time they can cover to provide customers with more affordable options and as a way to circumvent plan requirements under the ACA, furthering efforts to “undo” Obamacare.
The plans generally cost less because they don’t have to comply with coverage requirements set by the ACA, such as maternity care and prescription drugs. The short-term plans can also deny coverage to sick people, which ACA plans are prohibited from doing.
It should be noted that the availability of short-term plans varies from state to state. Some states have much tighter restrictions on short-term plans, and insurers choose to offer different plans in different areas.
In September 2018, a group of seven plaintiffs (representing health insurers, physicians, and consumer advocacy organizations) sued the Trump administration to stop the short-term care plan expansion, claiming it put ACA-compliant insurers at an unfair disadvantage because they’re required to cover these services and must charge higher premiums to do so. They argued the availability of short-term plans could draw away their healthy, young customers who might not feel like they need comprehensive insurance.
Judge Leon wrote in his ruling that the plaintiffs were unable to prove that the changes actually impacted their enrollment in 2019.
The Association for Community Affiliated Plans (ACAP), the plaintiff in the case, said in a statement it would appeal the decision.
“We remain firm in our contention that the Trump administration’s decision to expand dramatically the sale of junk insurance violates the Affordable Care Act and is arbitrary and capricious. We are confident that the appellate court will see this differently,” said Margaret Murray, CEO of ACAP.
Senator Susan Collins of Maine was the only Republican to vote for a Democratic resolution opposing the short-term plan regulation back in October, saying at the time it is essential that people with pre-existing conditions are covered.
Dems denounce ruling
U.S. Rep. Kathy Castor of Florida, who introduced legislation in February against the new short-term health care solutions, released this statement after learning of Judge Leon’s ruling:
“Junk plans are no substitute for meaningful health insurance but are instead cynical attempts to lure families and individuals into cheap and insufficient coverage. Junk plans do not protect you if you get sick, can discriminate against people with pre-existing conditions and leave you on the hook for costly medical bills.
“The House of Representatives passed my bill, H.R. 1010, in the Strengthening Health Care and Lowering Prescription Drug Costs Act to help Americans from being defrauded by junk plans that do not cover preexisting conditions, hospital stays, prescription drugs and other basic care.
“By promoting junk plans, the Trump administration is sanctioning higher health care costs for American families. The Energy and Commerce Committee heard direct testimony on this point on March 12, 2019.
“Such testimony and evidence led to adoption of my Strengthening Health Care and Lowering Prescription Drug Costs Act to halt the Trump administration’s expansion of these dangerous junk plans. It is imperative that the Senate immediately take up my legislation. I will continue to stand up and fight Republican efforts to take away comprehensive health coverage and increase health care costs – especially for my fellow Floridians and Americans with preexisting conditions.”
Castor sits on the U.S. House Energy & Commerce Committee, where she has oversight on federal health care initiatives, and helped to create the rules and standards in the ACA.
Rep. Xochitl Torres Small of New Mexico also issued a statement after the ruling:
“Just as important as health care accessibility is health care quality and affordability. [Friday’s] ruling is a serious blow to both. Allowing companies to offer low-quality health insurance plans that don’t cover pre-existing conditions leaves hundreds of thousands of my constituents at serious risk.
“Unlike the Administration, I am committed to protecting New Mexicans with pre-existing conditions, which is why I voted to protect them in May and will continue to going forward.”
- SEE ALSO: ‘So long’ to limits on short-term plans
I agree with the Democrats that “junk” plans are being marketed as real health insurance. President Trump is completely ignoring all the Health Insurance problems in this country. Hasn’t made it a priority which is a huge mistake.
Newby: How is Trump ignoring health insurance problems by allowing more short term? Please quantify. Your statement makes no sense to me. Republican leadership couldn't get their act together a few years back to get anything done to improve, alter, or remove the ACA, why blame Trump?
Trump did nothing but return STM to the original pre Obamacare term lengths.
STM is an alternative to being uninsured, nothing else.
STM IS 50% of the cost, due to providing less than 50% of ACA benefits.
ACA policies mostly pay claims right away if covered benefit, STM policy will research pre existing for months before paying claims. The bills will come, will u pay, or risk your credit.
STM policies will have good doctor PPO choice, ACA networks will limit your ability to survive a severe ongoing health crisis
STM agents need to disclose exclusions and sell to those only that are eligible.
Bad agents will sell STM incorrectly to increase their income, screw the client, and ultimately destroy people's lives with asset losses, endless debt, and reduced healthcare. Some agents may even become depressed when sued or when they find out the client was hurt by your recommendation.
And Policyholders need to actually read their policy. Options need be available for the uninsured higher income. But that doesn't give u the right to whine when the policy doesnt perform to your expectations.
My bigger concern is why are we letting Health Insurance Company control the health of our bodies in the first place. Between the Health insurance companies and drug companies, they can bankrupt more people and actually control who gets care and who doesn’t (indirectly of course because they can price people out of the market or underwrite them out of the market.) We continue to blame the administration and politics is heavy in it. My mind makes me wonder how much are the politicians receiving from these companies to vote the way they do. Medicare supplement plans are challenging enough, and it really doesn’t sound like they want to pay the doctors and drives the consumer to find doctors who will accept the plans instead of just allowing the doctors to do their jobs and paying the bill. I may be on the minority with my view but I talk to consumers everyday who feel the same way.
He is allowing the marketing of short term plans to people that think they are buying real health insurance. And basically he has done nothing toward revamping health insurance and our whole healthcare system. Zero.
It seems obvious that doctors and hospitals need to post prices that consumers can easily shop and compare. Step 1
It seems obvious that we need a system that everyone save money (spends less) when they cost the insurance company or the taxpayers less. And cost themselves more when they spend more.
It seems obvious that ALL health plans need to be available for purchase to everyone. No one should have better or worse choices based on their employer. And no one should ever lose their plan by losing their job. Health insurance should be stripped away from being tied to employers. All plans should be individual.
People should be able to shop for their medications on the world market.
Everyone needs to grow up and accept that good health insurance is expensive and only the poorest have a program where they pay very little.
That would be my start to the discussions. Any discussion where it’s “free” from the government is just BS.
Medicare supplement plans don’t want to pay the doctor? Or am I reading this wrong? Wow
Surely you realize that Trump can't get ANYTHING done as long as the Dumbs control the House.
Well, having just had to sign up for Medicare myself, I feel like I was trying to do a 1000 piece puzzle without the picture! I liked what was offered by one plan, and the price was good but oh, now I have to change doctors. And the doctors on their plan are more than 20 miles away. When you are sick, the last thing you want is to spend time traveling. I live within 20 minutes of a very large regional hospital which is also a teaching hospital with lots of doctors and specialists within 10 minutes, but yet they don't accept the plan (is it they are too greedy with fees or is the company too cheap to pay a reasonable fee. Doctors are trained to diagnose and help heal people. Now they need a degree to research each company before they agree to sign on to the plan. When you are "out of Network" guess who gets stuck with the bill? We need a better plan. I am still looking and hoping I can find a better plan that meets me at a reasonable premium and takes my doctors whom I have already established a relationship with. Transferring records is a pain and sometimes our customers "settle" because they don't want the hassles.
Should of used an independent agent that would have shown you a Medicare supplement plan where you would have had zero issues you just described.
Sounds like you don't have a medicare supplement
Rather you have a medicare advantage plan, Probably an HMO as well, Should have doctors within 20 miles though, Maybe not the best doctors but there should be at least a choice.
Everything is a give and take, With med Avantage you exchange some freedom and out of pocket in copays for lower premium and extra's like dental or vision
Yes but he doesn't even mention it other than to say how bad ObamaCare is. OK Captain Obvious. Start some discussion and some focused minds on how to fix it. Hint- include insurance agents, and people in the medical field in the discussion. Politicians don't know anything about it. That's why we got ObamaCare.
You are looking at Medicare Advantage which are alternative plans that take you off of Medicare. If you stay on original Medicare you can go to any doctor that accepts Medicare. And that is most of them.