Washington (GA recorder) — The Biden administration on Friday announced new initiatives to cut healthcare costs, but none will go into effect immediately.
change It includes proposed rules that would shorten the duration of short-term health insurance plans and require companies that offer plans to be more transparent about what is and is not covered.
The government guides hospitals on whether patients are on the network and whether their medical bills fall under billing limits. Act on Adjustment of Medical Expenses, Or it’s out-of-network care and billing costs are covered by a federal law known as . Surprise prohibition law.
The White House is also seeking information about, among other things, high-interest credit cards that can be offered in clinics to help people pay for medical bills.
Speaking Friday afternoon in the East Office of the White House, President Joe Biden said short-term health insurance policies were a scam and should be stopped.
“Americans thought they were buying temporary insurance that provided real coverage,” Biden said. “Instead, many people are being left with thousands of dollars in medical bills that these junk bills can’t cover. And I think that’s ridiculous.”
White House domestic policy adviser Neela Tanden said in a call with reporters on Thursday that the proposed rule, which could be finalized later this year, is being offered by Americans under the Affordable Care Act. He said it would help him understand the difference between a paid medical insurance plan and so-called “junk”. insurance. ”
Tanden said these short-term health insurance plans are “intended to provide temporary coverage when people switch insurance sources, such as between jobs.”
During the Trump administration, these short-term plans, which don’t have to provide the same kind of health coverage as other insurance plans, were allowed to run for up to three years, the people said.
“ACA has helped tens of millions of Americans access high-quality, affordable health insurance that protects Americans from discrimination due to pre-existing medical conditions,” Tanden said. “Unfortunately, some types of insurance plans, such as short-term term insurance, do not provide comprehensive coverage. Importantly, they are not required to comply with important ACA protections.”
Short-term plans leave some people with thousands of dollars in medical debt. Among them, she said, was a Montana man who refused cancer insurance and incurred $43,000 in medical bills, claiming his short-term plan had pre-existing cancer.
In addition to limiting these short-term health insurance plans to three months with a one-month renewal option, the proposed rule would “discriminate on the basis of pre-existing conditions and discriminate against plans that do not offer comprehensive benefits.” will be required to clearly disclose their limits.” It’s the consumer,” Tanden said.
Wisconsin Democratic Senator Tammy Baldwin praised the move in writing, saying short-term insurance plans are often listed at lower prices than other plans, but that there are pitfalls.
“Sticker price cuts mislead Americans into buying health insurance that they don’t need to cover pre-existing conditions, prescription drugs, maternity care, and many other basic needs. , you’re going to end up paying a lot out of pocket if: they certainly need medical care,” Baldwin said.
unexpected medical expenses
The Department of Health and Human Services has sent guidance to hospitals on unexpected medical bills, and Biden administration officials hope to reduce or eliminate those who receive thousands of dollars in unexpected medical bills.
“Under this new guidance, plans and providers have made it clear that they cannot circumvent the surprise billing rule simply by changing the terms they use in their contracts,” Tanden said.
“For example, some health insurance plans contract with hospitals and try to claim that they are not technically ‘in-network,'” she added. “Frankly, what they are doing is cheating the system. This is unacceptable and as stated in our guidance, this must stop.”
In providing background to detailing the guidance, a senior government official clarified that there is no gap between off-network cost protections covered by a federal law known as the No Surprises Act and affordability protections. said I need to. Care Act for in-network costs.
“We say there are no gray areas here,” the official said. “It’s either protection of the anti-surprise law or protection of out-of-pocket costs.”
“Hospitals charging insane and exorbitant fees must stop,” Mr. Biden said in his speech.
The administration’s third initiative, announced on Friday, asks the public to provide information about credit cards and certain types of loans that people are often given to help pay for medical bills.
Tanden said people signing up for this type of medical credit card may not understand how it works. This is because they “often include features such as teaser rates and deferred interest that add to the burden on consumers.”
As a background to discussing the details of the plan, a second government official also said that these credit cards often come with much higher interest rates than regular credit cards. It may also be provided to the patient at the provider’s office.
“This means that people are enrolling in these policies at the same time they are making medical care decisions. This is certainly not the best conditions for anyone to make financial decisions,” officials said. said the card “has built-in surprise tricks and lanyards.”
Virginia Democrat Rep. Bobby Scott, a leading member of the Education and Labor Committee, supported the move in a written statement.
“With today’s announcement, President Biden is fulfilling his promise to promote access to affordable health care and reduce everyday living costs for families,” Scott said. “In Congress, Democrats will continue to develop our progress and push for proposals that will vigorously defend the ACA against the relentless attacks of Republican politicians.”
