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.
