Rep. Scanlon Issues Statement On Health Insurance Policies

From CT State Rep: This morning, State Rep. Sean Scanlon (D-Guilford), House Chairman of the Insurance and Real Estate Committee, called on Insurance Commissioner Katharine Wade and the Connecticut Insurance Department to restrict the sale of short-term health insurance policies in Connecticut following yesterday’s decision by the Trump administration to allow for their sale.

“These junk plans are a danger to consumers and I am calling on Commissioner Wade to restrict the sale of these plans in Connecticut until the legislature convenes next year and can consider legislation that would regulate the sale of short-term plans and require such plans to include certain minimum consumer protection standards,” saidScanlon.

Under the Affordable Care Act, consumers were allowed to purchase short-term plans for up to three months. These plans were meant to be a temporary bridge between jobs. Yesterday’s decision by the Trump administration would allow people to purchase these plans for a longer duration - 364 days per year with the option to renew for up to 36 months.

While these short-term plans will likely have lower monthly premiums than traditional insurance policies, these plans will not be required to cover basic services such as pre-existing conditions, maternity care, mental health and prescription drugs that were the basis behind the Affordable Care Act's ten Essential Health Benefits.

Last session, Scanlon led passage of a law that requires all Connecticut insurance policies to cover the Essential Health Benefits even in the event the Affordable Care Act is repealed, but these short-term plans would not be subject to that law.

“Consumers desperate for price relief will be drawn to purchasing these plans by their low prices without realizing how largely worthless these policies are until they actually need to use their insurance for the first time,” said Scanlon. “I believe regulators and policy makers here in Connecticut have an obligation to make sure that doesn’t happen to the people we serve and that’s why we need to hit the pause button before these hit the market.”

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