Today, the Biden-Harris Administration is taking yet another action to lower health care costs and protect consumers from being scammed into purchasing lower quality insurance, or “junk insurance”. The Biden-Harris Administration is closing loopholes to prevent health insurance companies from misleading consumers into buying health plans that discriminate based on pre-existing conditions and that provide little or no coverage when consumers need it the most.
In addition, the final rule will require health insurance companies to be clear and up front with what consumers are buying. Short-term plans, as well as “fixed indemnity” insurance policies that provide a fixed, cash payment for a health care event, will have to include a clear, easy-to-understand consumer notice on marketing, application, enrollment, and reenrollment materials, so that consumers can make informed coverage purchasing decisions.
“CMS is committed to furthering the promises made by the ACA 14 years ago,” said CMS Administrator Chiquita Brooks-LaSure. “By increasing consumer understanding of short-term, limited-duration insurance and fixed indemnity excepted benefits coverage and making short-term plans truly short term, people will be more informed about the risks associated with these types of coverage and their options for comprehensive coverage.