Washington, DC—The Association for Community Affiliated Plans (ACAP), National Alliance on Mental Illness (NAMI), Mental Health America, American Psychiatric Association (APA), AIDS United, National Partnership for Women & Families, and Little Lobbyists today filed an appeal in the U.S. Court of Appeals for the D.C. Circuit challenging the recent decision on short-term limited-duration junk insurance (STLDI) plans. On July 19, Judge Richard Leon of the D.C. District Court upheld a 2018 Trump administration regulation allowing the dramatic expansion of the sale of STLDI plans as a direct competitor to comprehensive, Affordable Care Act-compliant health insurance in his ruling in Association for Community Affiliated Plans et al v. U.S. Department of Treasury et al.
This decision allows for the expansion of discriminatory, inadequate short-term “junk” plans, which can set higher premiums based on age, gender, and health status, deny access to basic benefits, lack protections even in the event of a catastrophic accident or illness, and deny coverage for any pre- existing condition. As a recent study from the Georgetown University Health Policy Institute confirmed, the plans are deceptively marketed and “often fail to provide consumers with the detailed plan information necessary to inform their purchase.” Expanding these plans will increase the number of Americans facing unexpected and unaffordable medical bills.