President Joe Biden on Friday announced actions that take aim at junk fees in short-term health insurance plans in his latest bid to provide financial relief to Americans, as voters remain unconvinced by his economic record.
The new proposed rules are designed to close loopholes that companies use to refuse payment for issues linked to pre-existing medical conditions, offering products that provide little coverage and leave customers riddled with debt, the White House said in a fact sheet.
“They dig into your medical records and discover you had asthma kid, claim you had a heart attack or a pre-existing condition, and refuse to pay,” Mr Biden said in remarks at the White House.
“Folks, that's not health insurance. That's a scam. It's a scam. It has to end.”
Mr Biden has gone after junk fees – or unnecessary, unavoidable or surprise charges that inflate prices while adding little to no value – in recent months, going after ticketing websites and credit card companies as part of a push to ease price pressures on consumers burdened by inflation.
“Those junk fees cost hundreds of dollars a month, tens of billions of dollars weighing on down family budgets and making it harder for people to pay their bills,” he said.
The economy remains the top priority for voters, with Americans remaining pessimistic over their finances. Only three in 10 voters believe the economy is “good”, a recent AP-NORC poll showed.
That issue remains one of Mr Biden's major weaknesses as he seeks re-election, with 34 per cent of voters approving of his handling of the economy.
The White House has sought to reframe his record on the economy by championing the phrase “Bidenomics”.
The President characterises the catchphrase as a counter to trickle-down economics championed by conservatives.
“I believe that every American willing to work hard should be able to get a good job with good health care, no matter where they live, in every part of the country,” Mr Biden said.
“That's the American dream. That's Bidenomics.”
Under the new rules, short-term plans would be limited to three months with a one-month renewable period, a significant drop from the previous period of three years.
Companies must also disclose to consumers a disclaimer explaining the limits of their short-term benefit plans.
