Trump Administration’s inadequate plans insure very little and will drive up costs
August 1, 2018
DENVER – The US Department of Health and Human Services’ finalized rules today allowing insurers to offer expanded short-term limited-duration insurance plans. These skimpy plans may steer some Coloradans to buy sham insurance plans because they have lower premiums. But they also cover less and lack the consumer protections of Affordable Care Act plans. Short-term plans can increase medical debt, exclude people with pre-existing conditions, and leave everyone purchasing comprehensive coverage facing higher premiums.
This statement is the Protect Our Care Colorado coalition’s response to the HHS final rule and can be attributed to Adam Fox, Director of Strategic Engagement of the Colorado Consumer Health Initiative.
“This final rule allows expanded use of junk insurance plans that leave consumers open to big health care costs and raises insurance premiums in the individual market. These inadequate plans do not have to comply with popular consumer protections like coverage of pre-existing conditions, and can charge far higher out-of-pocket costs to people who get sick and impose annual and lifetime limits on coverage. This opens the door to instability and uncertainty for those living with pre-existing conditions including cancer, heart disease, asthma or diabetes and anyone who wants comprehensive health coverage in the individual market now or in the future.
“Coloradans need to be aware that insurance companies can charge high premiums, exclude coverage for pre-existing conditions, leave out coverage for important services, and that these junk plans may be limited to 6 month duration rather than the expanded year under these new federal rules. These skimpy plans will also leave you unprotected from high medical bills, or leave you paying even higher premiums for real insurance.
“As insurers try to cherry-pick healthier individuals with these junk plans, siphoning them away from real insurance, this will increase costs for everyone else.
“This new rule continues the long running sabotage of our health care by the Trump Administration and Republicans in Congress. Enough is enough: it’s time to end the partisan war on our health care. The Administration should stop hurting people with pre-existing conditions, stop pushing skimpy, sham plans, and stop driving up costs up for Coloradans.”
Protect Our Care Colorado is a coalition of 48 organizations in Colorado advocating to protect the health care of Coloradans. To learn more about the coalition, visit ProtectOurCareCo.org.