Affordable Health Care Options Act of 2020

To amend the Public Health Service Act to provide more options for affordable health insurance to uninsured Americans. 1. Short title This Act may be cited as the Affordable Health Care Options Act of 2020 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) (6) Short-term limited duration insurance The term short-term, limited duration insurance (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 . (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) (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 (1) by redesignating section 2794 ( 42 U.S.C. 300gg–95 Public Law 111–148 (2) by adding at the end the following: 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). .

Summary: 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.