Pallone Applauds Biden Administration Action to Crack Down on Junk Short-Term Health Insurance Plans and Strengthen Surprise Billing Protections
Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) released the following statement today applauding the Biden Administration's Notice of Proposed Rulemaking to rein in Short-Term, Limited Duration Insurance (STLDI) plans and to strengthen patient protections against surprise billing:
"I strongly support the Biden Administration's efforts to rein in short-term, limited duration health insurance plans.
"The Trump Administration purposefully deregulated these junk plans and allowed them to rip off consumers while generating enormous profits for health insurance companies. It was a clear effort to undermine the Affordable Care Act and the historic progress we've made in expanding access to high-quality, affordable health care.
"Thankfully the Biden Administration's proposed rule puts people over profits and ensures that these junk plans will no longer be able to discriminate against Americans with pre-existing conditions and deceive consumers. I commend the Administration for their hard work on this proposal and look forward to seeing the rule finalized and implemented as soon as possible.
"I am also pleased to see the Administration continue to strengthen the No Surprises Act, which protects about one million patients per month against surprise medical bills. I applaud the Administration's ongoing commitment to protecting consumers and lowering health care costs."
In 2020, Democratic Committee leaders released a report following a year-long investigation into the anti-consumer practices of STLDI health care plans and the insurance brokers who sell and sign people up for these junk plans. The investigation found that the Trump Administration's policy to expand STLDI resulted in millions of people enrolling in misleading, bare bones health insurance plans that did not provide the comprehensive health care coverage they advertised and left consumers with large medical bills.
Pallone has long advocated for protecting consumers by reining in junk STLDI plans and previously introduced legislation to reverse the Trump Administration's expansion of these plans.
Pallone also authored and negotiated the bicameral agreement on the No Surprises Act, which established national comprehensive patient protections against surprise medical billing. Pallone has been a strong supporter of the Biden Administration's implementation of the pro-consumer law.