CEO DATELINE - Insurers, health advocates urge states to protect consumers from association health plans
CEO DATELINE - Insurers, health advocates urge states to protect consumers from association health plans
- December 15, 2017 |
- Walt Williams
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Ten organizations representing insurers and health care advocates are urging state regulators to take steps to protect consumers from President Donald Trump's plan to expand enrollment in association health plans and alternative insurance programs.
Trump signed an executive order Oct. 12 giving the U.S. secretary of labor 60 days to consider regulations or guidelines allowing more employers to band together through an association or local chamber of commerce to purchase health insurance for employees. He also ordered federal agencies to consider ways to expand short-term, limited-duration insurance and health reimbursement arrangements.
In an open letter to all 50 state insurance agencies, America's Health Insurance Plans and nine other groups said all three proposals could harm consumers by destabilizing insurance markets and driving up premiums, particularly for people with pre-existing conditions.
The groups were particularly worried about the expansion of short-term plans, which they said would siphon away healthy people into cheaper, less comprehensive plans while leaving sicker and older individuals with higher insurance costs.
They also urged state regulators to take steps to protect against any potential harm resulting from the expansion of association health plans and health reimbursement arrangements. Many states essentially regulated association health plans out of existence after many were shut down because of fraud.
"We call attention to those policy options that put the individual market and the consumers who rely on that market at risk," the groups said. "These products should include clear and accurate disclosures to consumers and ongoing state monitoring."
In addition to AHIP, the letter was signed by the American Cancer Society's Cancer Action Network, American Heart Association, Blue Cross Blue Shield Association, Center on Budget and Policy Priorities, Crohn's and Colitis Foundation, Epilepsy Foundation, Families USA, March of Dimes and National Multiple Sclerosis Society.
The U.S. Department of Labor has so far not issued any guidance concerning association health plans and not provided a timeline for those rules might be released. http://bit.ly/2Ci7tSF
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