The Biden administration is taking steps to tighten regulations on short-term health insurance plans, citing concerns over significant medical expenses faced by patients.
These plans, exempt from many consumer protections outlined in the Affordable Care Act (ACA), can offer limited coverage and discriminate against individuals with pre-existing conditions.
The administration has labeled these plans as “junk insurance,” contrasting them with the comprehensive coverage provided by ACA policies.
Supporters of the ACA worry that short-term health insurance plans may attract younger and healthier individuals away from marketplace plans, leaving a higher proportion of older and sicker Americans.
This shift in risk could result in premium increases for those remaining in ACA-compliant plans. The Trump administration had previously positioned short-term plans as a more affordable alternative due to their limited benefits.
Addressing Healthcare Costs and Surprise Fees
The proposed restrictions on short-term health insurance plans are part of the Biden administration’s broader efforts to reduce healthcare costs and address surprise medical billing.
These actions align with the administration’s “Bidenomics” agenda, which aims to support middle- and working-class Americans. President Joe Biden is expected to discuss these measures in an upcoming speech.
In addition to targeting short-term plans, the administration has introduced new guidelines to strengthen regulations protecting patients from unexpected medical billing.
The guidelines clarify that health insurers and hospitals are prohibited from entering contracts that exploit loopholes to claim providers are out-of-network, even when they are technically in-network.
The Biden administration is pushing for stricter regulations on short-term health insurance plans to address concerns over significant medical expenses and limited coverage.
By aiming to curb the proliferation of these plans, the administration seeks to protect consumers, prevent discrimination against individuals with pre-existing conditions, and maintain the stability of ACA marketplace plans.
In parallel, the administration is also taking measures to strengthen regulations on surprise medical billing, demonstrating its commitment to reducing healthcare costs and promoting consumer protection.
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