Health Care Freedom and Choice Act
Summary
The Health Care Freedom and Choice Act aims to nullify the interagency rule concerning Short-Term, Limited-Duration Insurance and Independent, Noncoordinated Excepted Benefits Coverage, published on April 3, 2024. This rule is identified as 89 Fed. Reg. 23338. The bill seeks to eliminate the force and effect of this specific regulation.
Expected Effects
If enacted, the Act would remove the existing federal regulations on short-term health insurance plans. This could lead to changes in the availability and regulation of these types of insurance products. The practical effect would depend on how states choose to regulate these plans in the absence of federal oversight.
Potential Benefits
- Potentially lower premiums for some individuals seeking short-term health insurance options.
- Increased choice in health insurance plans, particularly for those who do not need comprehensive coverage.
- Reduced federal regulatory burden on insurance providers offering short-term plans.
- Greater flexibility for individuals who need temporary health coverage during transitions.
Most Benefited Areas:
Potential Disadvantages
- Reduced consumer protections and potential for inadequate coverage under short-term plans.
- Increased risk of adverse selection in the insurance market, potentially raising premiums for comprehensive plans.
- Potential for confusion among consumers regarding the limitations of short-term insurance.
- Possible destabilization of the individual health insurance market.
Most Disadvantaged Areas:
Constitutional Alignment
The Act's constitutional alignment is primarily rooted in the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce, including insurance. However, the act itself does not regulate commerce, but rather removes a regulation. The Tenth Amendment could also be relevant, as it reserves powers not delegated to the federal government to the states, potentially giving states more authority over health insurance regulation if the federal rule is nullified.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).