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The Trump administration’s “death by 1,000 cuts” strategy against the Affordable Care Act took a step forward Tuesday morning with a proposal from HHS to allow insurers to sell skimpy short-term plans that don’t comply with the ACA’s rules. When finalized, this rule could create a parallel market where insurers can once again turn away people with preexisting conditions, charge sicker people higher premiums, and refuse to cover services as basic as emergency room visits and prescription drugs.
Meanwhile, as the rollback of federal oversight and regulation continues, Idaho is emerging as the state most determined to test how far the administration will allow it to go in flouting the rules that remain. The state recently moved to allow insurers to sell cheap plans that don’t meet the ACA’s minimum standards. Speculation that no insurer would actually offer these bare-bones plans for fear of being sued was put to rest this past week when one of the biggest companies in the state’s market—Blue Cross of Idaho—announced it would begin offering these plans this year. The state is allowing insurers to exclude coverage of maternity care, put a lifetime limit on a patient’s expenses, and charge people higher premiums if they have a preexisting condition—all policies that violate the ACA.
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