Affordable Health Care Options Act of 2020
This bill provides statutory authority for the rule by the Department of Treasury, the Department of Labor, and the Department of Health and Human Services regarding short-term, limited-duration health insurance plans.
Short-term, limited-duration health insurance plans are plans that may only offer coverage for a limited amount of time under law and that are exempt from the market requirements of the Patient Protection and Affordable Care Act (e.g., coverage of individuals with preexisting conditions). The rule increases the maximum authorized duration of such plans from less than 3 months (including renewals) to an initial maximum duration of less than 12 months (with a total duration of up to 36 months, including renewals). The rule took effect October 2, 2018.
The bill includes in the definition of such plans those with a renewal guarantee provision that permits a policyholder to pay for the option to purchase a future policy with a specified premium rate at the time of initial enrollment.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3821 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3821
To amend the Public Health Service Act to provide more options for
affordable health insurance to uninsured Americans.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 21, 2020
Mrs. Loeffler introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Public Health Service Act to provide more options for
affordable health insurance to uninsured Americans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Health Care Options Act
of 2020''.
SEC. 2. SHORT-TERM LIMITED DURATION INSURANCE.
(a) In General.--Section 2791(b) of the Public Health Service Act
(42 U.S.C. 300gg-91(b)) is amended by adding at the end the following:
``(6) Short-term limited duration insurance.--The term
`short-term, limited duration insurance' means insurance
covering medical care provided pursuant to a contract with an
issuer that--
``(A) has an expiration date specified in the
contract that is less than 1 year after the original
effective date of the contract and, taking into account
renewals or extensions, has a duration of no longer
than 3 years in total;
``(B) may include a renewal guarantee; and
``(C) with respect to such a contract having a
coverage start date on or after January 1, 2019,
displays prominently in the contract and in any
application materials provided in connection with
enrollment in such insurance in at least 14 point type
the language in the following notice, with any
additional information required by applicable State
law: `This coverage is not required to comply with
certain Federal market requirements for health
insurance, principally those contained in the
Affordable Care Act. Be sure to check your policy
carefully to make sure you are aware of any exclusions
or limitations regarding coverage of preexisting
conditions or health benefits (such as hospitalization,
emergency services, maternity care, preventive care,
prescription drugs, and mental health and substance use
disorder services). Your policy might also have
lifetime or annual dollar limits on health benefits. If
this coverage expires or you lose eligibility for this
coverage, you might have to wait until an open
enrollment period to get other health insurance
coverage.'.
``(7) Renewal guarantee.--The term `renewal guarantee',
with respect to short-term limited duration insurance, means a
provision in the contract that permits a policyholder, when
purchasing the initial insurance contract, to pay an additional
amount for a guarantee that the policyholder can elect to
purchase, for periods of time following expiration of the
initial contract, another policy or policies at some future
date, at a specific premium that would not reflect any
additional underwriting.''.
(b) Treatment of Short-Term Limited Duration Insurance as Excepted
Benefit.--Section 2791(c)(1) of the Public Health Service Act (42
U.S.C. 300gg-91(c)(1)) is amended--
(1) by redesignating subparagraph (H) as subparagraph (I);
and
(2) by inserting after subparagraph (G) the following:
``(H) Short-term limited duration insurance.''.
(c) Short-Term Health Insurance Options.--Part C of title XXVII of
the Public Health Service Act (42 U.S.C. 300gg-91 et seq.) is amended--
(1) by redesignating section 2794 (42 U.S.C. 300gg-95)
(regarding uniform fraud and abuse referral format), as added
by section 6603 of the Patient Protection and Affordable Care
Act (Public Law 111-148), as section 2795; and
(2) by adding at the end the following:
``SEC. 2796. SHORT-TERM HEALTH INSURANCE OPTIONS.
``Nothing in this title shall be construed to restrict individuals
from purchasing insurance covering medical care, including short-term
limited-duration insurance, that features renewal guarantees, as
defined in section 2791(b)(6).''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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