STATEMENT: New Junk Health Insurance Rule Will Increase Costs for People with Pre-Existing Conditions
Washington, D.C. — Today, the Trump administration released a final rule to expand the sale of short-term limited duration insurance plans, which lack critical consumer protections and have a long history of fraud, on the individual insurance market. The rule would allow consumers to enroll in short-term insurance for up to 364 days per year. Topher Spiro, vice president for Health Policy at the Center for American Progress, made the following statement in response to the rule’s release:
The American people should not be fooled: These plans are the Trump University equivalent of health insurance. This is just the latest example of President Donald Trump breaking his promise to protect people with pre-existing conditions. By proliferating the sale of junk insurance plans that exclude critical benefits and have higher out-of-pocket costs that many cannot afford, this rule will increase costs for consumers with health needs. But it’s not just consumers enrolled in these plans who could pay more—this rule will also increase premiums for middle-class families currently enrolled on the individual market. If Congress refuses to protect consumers, states must intervene to ban the sale of junk insurance.
- A recent CAP analysis finds that this rule, along with the repeal of the ACA’s individual mandate, will produce substantial premium increases that would otherwise be unnecessary.
- A recent CAP brief that outlines steps states should take to counteract sabotage efforts. The appendix of this brief includes model legislative text for these strategies.
For more information on this topic or to speak with an expert, please contact Colin Seeberger at firstname.lastname@example.org or 202.741.6292.