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Biden Cracks Down on ‘Junk Insurance Plans’

Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
Biden Cracks Down on ‘Junk Insurance Plans’

Biden Cracks Down on ‘Junk Insurance Plans’

Biden Cracks Down , on ‘Junk Insurance Plans’.

On March 28, President Joe Biden announced that a new rule will limit short-term health insurance plans to three months, ABC News reports.

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The plans can now only be renewed for up to four months instead of three years that were permitted under former President Donald Trump.

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The plans can now only be renewed for up to four months instead of three years that were permitted under former President Donald Trump.

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Additionally, short-term plan providers must clearly explain benefit limitations to consumers.

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The president really believes the American people do not want to be taken for suckers and junk insurance takes them for suckers, Neera Tanden, Biden's domestic policy adviser, via statement.

Short-term insurance is intended to temporarily serve as a safety net for periods of transition, such as switching jobs or prior to receiving Medicare.

However, critics call these plans "junk insurance" because they're often misleading as far as what they actually cover.

ABC News reports that the plans aren't required to cover those with preexisting conditions or pay for prescription drugs.

In 2018, Trump expanded short-term plans and referred to them as "much less expensive health care at a much lower price.".

Neera Tanden, Biden's domestic policy adviser, said that Trump undermined the Affordable Care Act (ACA) when he allowed insurance companies to sell inadequate short-term plans.

Neera Tanden, Biden's domestic policy adviser, said that Trump undermined the Affordable Care Act (ACA) when he allowed insurance companies to sell inadequate short-term plans.

The short-term plan expansion was upheld by an appeals court in 2020


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