Commissioner Jones urges federal government to withdraw proposed health care rule
News: 2018 Press Release
"The proposed rule, Short-Term, Limited-Duration Insurance, 83 Fed. Reg. 7437 (proposed Feb. 21, 2018), is yet another attack on the integrity of the nation's health insurance markets. This rule attempts to replace comprehensive coverage compliant with the Affordable Care Act (ACA) with skimpy health insurance that had previously driven some consumers to bankruptcy.
Short-term limited-duration insurance is not individual health insurance under federal law and, therefore, does not have to comply with the ACA. These policies typically lack the consumer protections available in the ACA market by utilizing underwriting based upon health status, denying coverage for individuals with pre-existing conditions, or pricing those individuals out of these products. As such, under federal law, an insurer could deny coverage or charge higher premiums based on any factor the insurer deems relevant, including pre-existing conditions, gender, gender identity, or age, unless prohibited by state law. Although touted as being an affordable alternative to ACA-compliant coverage, these policies return us to a race to the bottom rather than providing a meaningful alternative.
I strongly oppose the proposed rule, Short-Term, Limited-Duration Insurance (proposed Rule), because it further erodes the protections provided under the ACA, poses significant risk to health insurance markets in California and the nation, and offers consumers skimpy health insurance policies that cannot be relied upon to cover necessary health services when they need them most."
Commissioner Dave Jones' letter
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.