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Bill To Ban Sale Of Short-Term Health Insurance Plans Advances In State Senate

The California State Capitol in the early evening in Sacramento, Wednesday, A...

Credit: Associated Press

Above: The California State Capitol in the early evening in Sacramento, Wednesday, Aug. 31, 2016.

The California state Senate health committee has approved measure SB-910which would prohibit the sale of short-term health insurance plans.

Short-term plans don’t have to offer the same array of benefits as Affordable Care Act policies, and they can exclude people with pre-existing conditions. They can also impose limits on coverage.

The Trump administration says the short-term plans are a viable and cheaper alternative for people who are priced out of the Obamacare market. The administration has issued a proposed rule that would allow the sale of these policies for a duration of 364 days.

Health Access California Executive Director Anthony Wright said short-term plans undermine the Affordable Care Act’s consumer safeguards.

“Whether it’s about no denials for pre-existing conditions, essential health benefits, no annual or lifetime limits, these short-term, or junk, plans don’t have to abide by any of those consumer protections," Wright said.

Anthem Blue Cross officials said short-term plans could be a good option for people who are between jobs.

The bill to ban the sale of these products now moves onto the Senate appropriations committee.

The California state Senate health committee has approved measure SB-910 which would prohibit the sale of short-term health insurance plans.

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