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New Health Insurance Rule Announced – Biden Administration Cracks Down Health Insurance Policy Terms Nationwide

By: Michael Kopek August 13, 2024 1:42 am

Time to read: 5 Minutes

New Health Insurance Rule Announced – Biden Administration Cracks Down Health Insurance Policy Terms Nationwide

Overview

The Biden-Harris Administration has taken significant steps to fortify health insurance protections for American families. One major initiative is cracking down on so-called “junk insurance” plans that will impose limits on health coverage, with the rule going into effect on September 1st. The new rulings are aimed at ensuring that health plans offer genuine, comprehensive coverage.

If you want to secure a PPO plan and not have to worry about the unknown, make sure to contact us before September 1st.

Key Highlights:

  • Limit on Short-Term Plans:

Under the new rule, short-term health plans will now be limited to three months, with a possible extension to four months. Previously, these plans could extend up to three years, but not will be limited to 3-months, ensuring that short-term coverage is used to fill a temporary gap between two comprehensive policies, rather than serving as a long-term coverage solution.

At First Family Insurance, we offer a variety of strong short term insurance plans that can suit your needs.

  • Clear Disclosures:

Health insurance plans must now provide clear disclaimers outlining what services are covered and the extent of the coverage. This ensures consumers have a real understanding of their health plan.

  •  Deadlines

If you want to secure your coverage outside of the marketplace, your deadline is Sept 1, 2024.

Contact us today to secure coverage prior to the deadline.

If you want to lock in coverage so you don’t have to rely on the marketplace, contact us before September 1st.

Get the coverage you deserve. Contact First Family Insurance today for a free health insurance quote.

Consumer Protection

Under the new guidelines, protections against bad insurance are strengthened, reducing the risk of families encountering hidden fees and unexpected bills. These actions help eliminate scam insurance plans that offer very little real coverage, ensuring that consumers are not left vulnerable.

Efforts to Reinforce the Affordable Care Act

The administration remains committed to enhancing the Affordable Care Act (ACA). The ACA has been instrumental in providing affordable and high-quality health insurance to millions of Americans.

It also includes vital protections for individuals with pre-existing conditions. Previous efforts to undermine the ACA allowed insurance companies to exploit loopholes, offering plans that reduced essential consumer protections.

Case Studies Highlighting the Need for Change

As cited by whitehouse.gov, instances, where families were burdened with massive medical bills due to junk plans emphasize the necessity of these new rules. For context, “junk plans” are Fixed Indemnity Limited Medical plans that are advertised as Major Medical, but do not have a Maximum Out of Pocket. This leaves consumers exposed to high medical bills due to the limited benefits that the Fixed Indemnity plans offer.

For example, a Montana man faced $43,000 in health care costs due to his insurance plan denying coverage for cancer treatment, citing it as a pre-existing condition.

Similarly, a woman in Pennsylvania was hit with nearly $20,000 in bills for an amputation that her plan refused to cover.

Opposition and Budget Proposals

The administration’s measures contrast sharply with recent budget proposals from House Republicans, who have supported reversing these protective actions.

Their plan aims to cut $4.5 trillion from the ACA and Medicaid, potentially stripping coverage from over 45 million people and removing critical consumer protections.

Compliance and Enforcement

Ensuring compliance with these new rules is critical. Health plans must adhere to the new guidelines, providing clear information to consumers about policy limitations and coverage. This transparency helps consumers make informed decisions about their health care.

With the new regulations, ensuring you have reliable and comprehensive coverage has never been more important. At First Family Insurance, we’re here to help you navigate these changes and avoid the pitfalls of inadequate health insurance. Our knowledgeable team is dedicated to finding you a plan that meets your needs, providing security against unexpected medical expenses.

Protect your family from junk insurance. Contact First Family Insurance today to explore your coverage options.

Summary

  • The Biden-Harris Administration is cracking down on “junk insurance” plans to enhance health insurance protections and prevent unexpected medical bills.
  • Short-term health plans are now limited to three months, with a possible extension to four months, down from the previous duration of up to three years.
  • Insurance plans must now include clear disclaimers about covered services and coverage extent to ensure transparency for consumers.
  • The administration aims to strengthen the Affordable Care Act (ACA), which provides affordable insurance and protections for individuals with pre-existing conditions.
  • House Republicans oppose these measures, proposing budget cuts to the ACA and Medicaid that could impact coverage for over 45 million people.

Michael Kopek

As a licensed insurance agent in over 35 states, it’s my goal to find a perfect solution for anyone looking for coverage. Whether it’s a short term plan to fill a gap in coverage, or a more permanent solution for self employed individuals, I pride myself on working to make the process easy and affordable for all of my clients. I’ll be your personal health insurance advocate, just a phone call away for anything that comes up. With plans from United Healthcare, Aetna, Cigna, Pivot, Blue Cross, or any other carrier, I guarantee that I can help in meeting your personal needs

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