Democrats demand answers on Trump short-term insurance plans

House and Senate Democrats want answers about the Trump administration’s decision to expand the availability of short-term insurance plans that are not required to meet ObamaCare requirements.

The letter sent Tuesday is the third time Democratic health care leaders have written to the administration about the short-term plan proposal, but the first time since Democrats took control of the House.

ADVERTISEMENT
Lawmakers said they have yet to receive all of the information and answers they requested. Democratic Reps. Frank Pallone Jr.Frank Joseph PalloneFacebook takes down anti-NATO pages linked to Russia Overnight Health Care: Dem chair plans hearing on Medicare for all | Senate GOP talks drug prices with Trump health chief | PhRMA CEO hopeful Trump reverses course on controversial pricing proposal Dem chairwoman plans hearing on Medicare for all proposals MORE (N.J.), Richard NealRichard Edmund NealOn The Money: Trump teases 'major announcement' Saturday on shutdown | Fight with Dems intensifies | Pelosi accuses Trump of leaking trip to Afghanistan | Mnuchin refuses to testify on shutdown impacts Mnuchin refuses to testify at hearing on shutdown impacts On The Money: Shutdown Day 27 | Trump fires back at Pelosi by canceling her foreign travel | Dems blast 'petty' move | Trump also cancels delegation to Davos | House votes to disapprove of Trump lifting Russia sanction MORE (Mass.) and Bobby ScottRobert (Bobby) Cortez ScottDems offer measure to raise minimum wage to per hour Hopes fade for bipartisan bills in age of confrontation House Dems to introduce minimum wage bill MORE (Va.), as well as Democratic Sens. Ron WydenRonald (Ron) Lee WydenCongress should elevate those trapped in the gap – support ELEVATE Act IRS shutdown plan fails to quell worries IRS waiving penalty for some in first filing season under Trump's tax law MORE (Ore.) and Patty MurrayPatricia (Patty) Lynn MurraySen. Murray says Washington behavior reminds her of former preschool students Senate rejects government-wide ban on abortion funding Overnight Health Care: Dem chair plans hearing on Medicare for all | Senate GOP talks drug prices with Trump health chief | PhRMA CEO hopeful Trump reverses course on controversial pricing proposal MORE (Wash.), signed the letter.

The Democrats said they remain concerned about the administration’s “flawed” economic analysis on the expansion of short-term plans, which they said appeared to significantly underestimate the number of individuals who would sign up for short-term plans, and the impact the proposal would have on premiums in the individual market.

“We believe allowing for renewal or extension of short-term policies for up to 36 months is contrary to law, and that the creation of an entirely unregulated parallel market competing against the market for Qualified Health Plans goes against Congressional intent in enacting the comprehensive consumer protections embodied in the Affordable Care Act,” they wrote.

The Trump administration in August finalized rules expanding non-ObamaCare health insurance plans in an effort to provide cheaper health insurance options.

Short-term health insurance plans can now last up to a year, lifting a limit of three months imposed under former President Obama. Insurers can renew the plans for up to three years. 

The administration touts these plans because they offer lower premiums for healthy people, but the plans do not need to follow ObamaCare rules, meaning they can charge people with pre-existing conditions higher premiums and leave out coverage of certain health services.

Democrats have labeled the plans as “junk” insurance and claim the move is part of the administration’s efforts to “sabotage” ObamaCare.

Insurers have also warned that the move will raise premiums for people remaining in ObamaCare plans, since some healthy people will be siphoned off into the new short-term plans.