Biden administration seeks to restrict ‘junk’ health insurance plans

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A proposal is expected to be made tomorrow for a new regulation to crack down on short-term coverage.

The Biden administration is expected to propose a new regulation tomorrow, with the intention of cutting back on short-term health insurance plans.

This rule is long awaited and expected, to reign in the expansion of weak coverage from the Trump years.

Democrats have been criticizing the expansion of thin health insurance coverage that was permitted during the Trump administration. They, along with patient advocacy groups, have criticized this type of skimpy coverage for undermining the Affordable Care Act and the broad protections it provides to patients who have pre-existing conditions.

Health insurance - ACA Form

This strategy is to be announced as the White House works to place the country’s eye on the Biden administration’s efforts to bring down the cost of prescription drugs for seniors, crack down on junk fees, improve the economy as a whole, and combat inflation.

The health insurance announcement is expected to be one of many in a speech Biden is expected to make.

President Joe Biden is expected to give a speech at the end of the week. In it, he will detail his plans to change healthcare regulations. He is also expected to “announce major actions to lower health care costs and crack down on junk fees,” said a White House official quoted by POLITICO.

The White House has not yet released an official comment about potential health insurance changes.

At the time this article was written, the White House had not yet commented officially about any intentions to make changes to healthcare in this way. That said, the proposed new rules have received the green light from the White House’s budget office as of last week, according to a regulatory review notice posted on its official website. This is an indicator that the proposed regulations have made it through the final internal stages.

A newer short-term health insurance plan policy has been created to “ensure this type of coverage does not undermine the Affordable Care Act” or other coverage markets, said the description of the rule on the White House website.

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