Title: Affordable Health Care Options Act of 2020
Policy area: Health

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3821 Introduced in Senate (IS)]

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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).''.
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