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08.01.2019 / Press Release

Statement: Congress Right to Call the Administration’s Bluff and Protect America’s Families from Junk Insurance Companies

Washington, D.C. – Earlier this month, the Government Accountability Office issued an opinion finding that the Trump Administration’s October 2018 guidance on Section 1332 waivers was in fact a rule under the Administrative Procedures Act and Congressional Review Act (CRA). Congressional leaders are introducing a joint resolution to stop implementation of the 1332 rule under the CRA.Families USA executive director Frederick Isasi released the following statement regarding the Joint Resolution

Congress Right to Call the Administration’s Bluff and Protect America’s Families from Junk Insurance Companies

“Families USA applauds Senate leaders’ introduction of legislation under the Congressional Review Act to stop implementation of the harmful 1332 rule. In trying to call it guidance instead of a rule, the Administration used an illegal procedure to implement an illegal rule. We thank Sen. Ron Wyden and Rep. Frank Pallone for calling the Administration’s bluff by asking the GAO for its opinion on the legal status of the rule.

The President and Republican leadership tried to pass legislation last congress to allow health insurers to sell sub-standard policies that would have opened the door for terrible insurance company tricks. They lost that fight. They are trying to make an end-run around their legislative failure and do this administratively—the substance of this 1332 rule is illegal. And now we know that the process they used to issue the rule also is illegal.

Families don’t want junk insurance. They want help to be able to afford health coverage that provides real financial protections. The President’s proposed 1332 rule could have allowed families to pay premiums month after month and then discover they were on the hook for critical health care costs like hospital care, physician services or prescription drugs. Instead of allowing junk insurance companies to take advantage of families, what the Administration should be doing is working with Congress to ensure that health insurance is more affordable, accessible and provides real financial security.

By issuing this illegal1332 rule, the Administration is wasting taxpayer dollars and demonstrating that they are choosing to line the pockets of junk insurers rather than protect children, parents, and families.

We applaud Sen. Mark Warner, Rep. Anne Kuster and their colleagues for introducing this legislation to stop implementation of the 1332 rule. Congress should immediately pass this legislation to stop the Trump Administration’s effort to let junk insurance be sold again.”