California Attorney General Xavier Becerra Opposes Expansion of Low-Quality Health Plans

SACRAMENTO, CA – California Attorney General Xavier Becerra expressed strong opposition to a Trump Administration proposal that would allow insurers to sell inadequate, short-term health plans to consumers.  The proposed change would flood the market with short-term plans that do not include essential benefits like coverage of preexisting conditions, maternity care, or substance abuse treatment.  While the Affordable Care Act (ACA) has helped millions of Californians access more affordable coverage, this proposal would create a loophole for insurance companies that undermines this progress.  According to the Urban Institute, under this proposed rule, California would face an estimated 9.4 percent increase in individuals without coverage, and would see patients’ premiums increase by 17.8 percent.

“This is just another attempt by the Trump Administration to undermine the ACA and go back to the days of buyer beware health insurance.  California has led the country in ensuring high-quality and affordable healthcare and we do not intend to turn back,” said Attorney General Becerra.  “Short-term plans are not meant for primary coverage, but this rule would flood the market with stripped-down, junk health insurance plans that don’t provide the reliable, comprehensive coverage families need when an emergency occurs leading to bankruptcy.  We should be making policies that help people access affordable coverage, not looking for ways to roll it back.” (Read more).