October 2, 2019
STATEMENT FROM DFS SUPERINTENDENT LINDA A. LACEWELL ON REPORTS OF INCREASED SALE OF ‘TRUMPCARE’ JUNK HEALTH INSURANCE PLANS
In response to recent news reports regarding the increased sale of limited duration health insurance plans, some marketed as ‘Trumpcare’ plans, DFS Superintendent of Financial Services Linda A. Lacewell issued the following statement reminding New Yorkers that such plans are prohibited for sale in New York State:
“We know that so-called Trumpcare - or however else these short-term plans are marketed – is nothing more than a ploy to convince Americans to buy junk insurance. Here in New York State we have said clearly and repeatedly that these plans are prohibited for sale in the Empire State. These plans often fail to cover basic services and end up making health insurance more costly for consumers, and the fact that such junk insurance is allowed for sale anywhere in the US is an unfortunate product of the current federal administration’s continual dismantling of basic protections for Americans seeking quality and affordable healthcare. New York State will continue to put consumers first and stand guard against those that seek to undermine the protections guaranteed by our laws by selling short-term plans or limited benefit policies which fail to comply with New York State mandates.”
In June 2018, NY DFS issued a circular letter reminding insurers and health maintenance organizations (HMOs) that short-term limited duration health insurance plans are prohibited in New York State regardless of potential federal regulatory changes. In November 2018, DFS again reminded insurers, that health insurance policies that are sold on a longer-term basis, but still with limited benefits, are not permissible in New York. Short-term plans were created by the federal Department of Health and Human Services as an end-run around the Affordable Care Act and recent news reports have revealed serious shortcomings with patients ending up facing enormous medical bills when they believed they had more robust coverage.
New Yorkers who believe they may have bought one of these plans should file a complaint at www.dfs.ny.gov/complaint or contact DFS’s consumer assistance hotline at (800) 342-3736.