Associated
Press August 1, 2018
WASHINGTON (AP)
— The Latest on Trump administration's short-term health insurance plans. (All
times local):
11:30 a.m.
The Trump
administration's new regulation expanding short-term health insurance plans
contains what amounts to a legal life preserver in case a key feature is struck
down by a court.
Up to now,
short-term health insurance has been a niche product, covering people for
several months or less than a year.
The Trump administration
now says that short-term plans can last up to 12 months and be renewed for up
to 36 months. Making the plans renewable is a novel twist. And it could draw a
court challenge.
A
"severability clause" in the rule spells out that if the 36-month provision
is invalidated, the rest of the regulation would still stand. That would allow
insurers to keep marketing the plans, instead of throwing the entire regulation
into doubt.
Senate Democratic
Leader Chuck Schumer of New York is vowing to do everything
in his power to block the administration.
Short-plans cost
about one-third as much as comprehensive coverage but don't have to cover
pre-existing medical conditions.
10:30 a.m.
A major insurer
group is warning that the Trump administration's short-term health insurance
plans could be harmful for consumers.
The group is
the Blue Cross Blue Shield Association, whose member plans are a mainstay
of Affordable Care Act coverage.
A senior vice
president, Justine Handelman said health insurance should be available
and affordable for everyone, "regardless of their health status."
She said consumers
could be harmed by slimmed-down policies that don't provide comprehensive
coverage. That could make comprehensive coverage more expensive and leave some
consumers "unaware of the risks of these policies," she added.
Earlier Wednesday,
the Trump administration said it's clearing the way for health insurers to sell
short-term plans as a low-cost alternative to pricey Obama-law policies for
people struggling with high premiums. But the policies for individuals have no
guarantees of coverage for existing medical conditions and come with limited
benefits.
Federal health
officials say the plans can last for up to 12 months and may be renewed for up
to 36 months
9:04 a.m.
Senate Minority
Leader Chuck Schumer of New
York says Democrats will "do everything in our power"
to stop the Trump administration's expansion of short-term health insurance
plans.
It's unclear how
that might happen, since versions of such plans have long been available —
including during the Obama administration.
"These new
short-term plans are nothing short of junk insurance and are so dangerous for
Americans that it's no wonder not a single group representing patients,
physicians, nurses or hospitals has voiced support," Schumer said in a
statement.
Proponents of
short-term plans say they provide a fallback option for healthy people who make
too much money to get subsidized coverage under Obama's health law.
7:00 a.m.
The Trump
administration says it's clearing the way for health insurers to sell
short-term plans as a low-cost alternative to pricey Obama-law policies for
people struggling with high premiums.
But the policies
for individuals have no guarantees of coverage for existing medical conditions
and come with limited benefits.
Federal health
officials say the plans can last for up to 12 months and may be renewed for up
to 36 months. Details are expected Wednesday.
Short-term plans
have been a niche product for people in life transitions, people switching
jobs, people retiring before Medicare eligibility or people aging out of
parental coverage.
Officials hope the
plans will appeal to people ineligible for income-based subsidies under the
Affordable Care Act. Critics say the plans undermine the health law.
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