A pandemic is among the worst of times to find yourself without health insurance. Unfortunately, many of the 2 in 5 Georgians who lost their jobs during the COVID-19 outbreak have also lost their health insurance, finding themselves in that exact situation. Thankfully, President Trump had already reinstated health insurance options for families that need affordable, basic coverage, and it is time to make those plans permanently available.
Thanks to Gov. Brian Kemp’s leadership in reopening Georgia after the lockdown, many Georgians began being able to resume aspects of their lives and work. Many of those whose jobs were affected were able to get back on the job. However, many were not, and the state faces an unemployment rate of over 12%. As we start to address the results of the pandemic response, families are now navigating the uncertainty and economic reality and the economic harm of it.
In order to offer more flexibility and certainty during times of dislocation and change, we need to offer commonsense reforms. That’s why I’ve introduced legislation to make access to short-term health plans a permanent solution.
Short-term health plans are limited-duration insurance options that offer an alternative to COBRA insurance and the plans found on Obamacare exchanges. They provide stopgap coverage for people such as recent graduates, senior citizens who do not qualify for Medicare, and workers between jobs or out of a job. On average, short-term plans cost 50% to 80% less than individual market plans, which means more money is left for groceries or rent and utilities. These plans had been available for nearly 20 years until President Barack Obama substantially restricted them just weeks before leaving office. The Trump administration wisely reexpanded the availability of short-term plans in 2018, and courts upheld this action last year. Now, it is time to protect consumers’ access to these short-term plans.
My legislation, the Affordable Health Care Options Act of 2020, codifies the Trump administration’s regulations on short-term, limited-duration health insurance plans that allow short-term plans to last up to 12 months and be renewed for up to 36 months. Limiting the federal government’s ability to restrict these plans will give families more options.
The legislation is part of my USA Restoring & Igniting the Strength of our Economy Plan, a framework to reinvest in the nation, grow jobs, and help families amid the COVID-19 crisis. Rather than creating uncertainty, I want to offer Georgians solutions that put them, not the government, in command of their healthcare options. With so much uncertainty, people need the freedom and flexibility to make the best healthcare decisions for themselves and for their families.
Prior to the pandemic, short-term plans were slated to help more than 2 million people gain coverage that had not previously been affordable for them. Without knowing how long it will take many small companies to recover, short-term plans offer a more practical, cost-effective option than most plans on the exchange.
While we will continue to fight COVID-19, I will also continue to do all I can to help Georgia families and employers recover. Maintaining access to short-term health plans is just one way we can help ensure that Georgians, and all people, have the resources they need to weather this crisis, plan for the future, and thrive in the years to come.
Sen. Kelly Loeffler, a Republican, is the junior senator from Georgia.
