Independence Holding Co. of Stamford is one of a dozen short-term limited duration insurance brokers that a Congressional committee is investigating for possibly acting against consumer interests.
The House Energy & Commerce Committee ”“ which has labeled such plans, known as STLDI, as “junk insurance” ”“ is examining whether short-term insurance vendors like Independence are misleading consumers, denying coverage to individuals with pre-existing conditions, failing to cover basic services and refusing to pay large sums in medical claims.
“The committee”™s initial examination of these plans has yielded disturbing information about how insurance companies that sell STLDI discriminate against individuals with pre-existing conditions and put consumers at significant financial risk,” according to a letter sent to the heads of the 12 companies, including Independence CEO Roy Thung, by Committee Chairman Frank Pallone Jr. (D-N.J.) and other committee members.
The committee said that a number of recent studies of the STLDI sector have revealed that the companies are not always clear about what the plans cover and whether or not they are in compliance with the Affordable Care Act. STLDI plans are not required to offer the ACA”™s essential health benefits, something that is not always clear, according to the committee.
Other companies being asked to provide materials documenting their ACA compliance, marketing of STLDI plans, and underwriting and processing procedures are Agile Health Insurance, Anthem, Arkansas Blue Cross Blue Shield, Blue Cross Idaho, Cambia Health Solutions, eHealth, Everest, Health Insurance Innovations, Healthcare Solutions Team, National General Accident & Health and UnitedHealth Group.
