Trump’s latest move to sabotage insurance for low- and moderate-income families is to try to increase the number of flimflam plans and to leave customers unfortunate enough to need medical care with huge bills.
The proposal would let companies that want to offer substandard health insurance to their workers band together on the basis of geography or what type of industry they’re in. These Association Health Plans could sidestep requirements of the Affordable Care Act that they offer essential benefits such as maternity care, substance abuse treatment and prescription drug coverage.
Even the proposed rule acknowledges that the “flexibility” for such plans under the proposal “could introduce more opportunities for mismanagement or abuse…”
“History suggests illegal health plans will aggressively exploit vulnerable small businesses if AHP regulatory change passes,” wrote Matthew J. Smith of the Coalition Against Insurance Fraud. “These fraudsters solicit small businesses desperate for affordable health coverage, take their insurance premiums, pay few claims and funnel the cash to off-shore bank accounts.”
In 2000-2002, 144 unauthorized entities peddled health coverage to at least 15,000 employers and left at least $252 million in unpaid medical claims, according to a report by the Government Accountability Office.
Employers Mutual LLC, which claimed to provide healthcare coverage to more than 20,000 people nationwide, had more than $20 million in unpaid claims when it was shut down. Service and Business Workers of America Local 125 Benefit Fund left behind about $13.3 million in unpaid claims.
Powered by WPeMatico