Congressional Republicans and the White House want to add a bill that would expand access to cheap, low-quality healthcare plans to a long-term spending deal.
The bill from Sen. John Barrasso, R-Wyo., would expand the duration of short-term insurance plans, which would compete with Obamacare plans. The bill would build on the Trump administration’s regulatory move to expand the plans.
Barrasso told reporters Wednesday that he and the White House want to add the bill to the omnibus spending deal. However, the contents of the two-year spending bill are in flux.
“Everyone is trying to catch a ride on the [omnibus] now and there are a lot of moving parts still there,” said Sen. John Thune, R-S.D., a member of House leadership.
When asked if Barrasso’s bill could make it into the omnibus, Thune responded “maybe.”
Sen. John Cornyn, R-Texas, told reporters Wednesday he hopes to have the language for the spending deal out by the end of the week.
Current funding for the government runs out at midnight March 23.
Barrasso’s legislation builds on a proposed regulation that the Trump administration released this year. The proposed rule would expand the duration of short-term plans from 90 days to 364 days.
The legislation would do the same thing, but it would make the plans “guaranteed renewable” if the applicant wants, according to a statement on the bill.
“Making the plans guaranteed renewable means if people want to stay in their plan, they can renew it without going through the whole application process again or being dropped from their plan,” Barrasso’s release said.
The proposed rule does not include guaranteed renewability, but Health and Human Services Secretary Alex Azar has said that was something the administration is considering and is seeking comments on whether the agency has the authority to add guaranteed renewability to the rule.
Barrasso billed the short-term plans as an Obamacare “escape hatch” because they do not have to abide by quality requirements for plans sold on the law’s insurance exchanges on the individual market. The requirements include coverage of essential health benefits such as maternity care and a prohibition on charging sicker people higher premiums.
The Trump administration also has proposed a regulation to expand access to association health plans, which are used by small employers and individuals. The plans also bypass Obamacare’s quality regulations.
Critics charge that the short-term plans are merely “junk insurance” that won’t provide adequate care to people.
“I cannot support junk plans,” said Rep. Frank Pallone, D-N.J. “I cannot support the erosion of the essential benefits package or the patient protections with regard to pre-existing conditions. That is something that was totally contrary to the [Affordable Care Act.]”
