Audio News Wrapper: Short-Term Health Insurance Called “Junk” by Consumer Advocates

By Andrea Sears, Public News Service

NEW YORK, NY—(PNS)—A new health insurance rule is being called another blow to people with pre-existing conditions. On Wednesday, the Trump administration released a new rule that allows insurance companies to expand the sale of short-term insurance plans that don’t cover the health benefits deemed “essential” by the Affordable Care Act.

Cheryl Fish-Parcham, director of access initiatives with the group Families USA, said the plans, originally restricted to just three months of coverage, will be expanded to one day short of a year, with options for renewal. She added the fine print is loaded with exclusions.

“People have bought plans like this in the past and then found out that they literally covered nothing for the condition that they thought they were covered for,” Fish-Parcham said.


Hear Fish-Parcham discuss the shortcomings of short-term health insurance plans in this audio news wrapper report with correspondent Steve Lubetkin.


The administration has said expanding the availability of short-term plans will give consumers more options for purchasing health insurance. The rule will go into effect in October.

But Fish-Parcham said allowing insurers to deny coverage for things like prenatal care, mental health and pre-existing conditions will potentially short-change those who buy the plans, while raising premium costs for everyone else.

“It can lead to medical bankruptcies, it can lead to market instability,” she said. “Consumers will doubtless be very confused when they look at these policies and don’t understand what they are.”

She said the rule will also allow insurers to cancel policies retroactively for a pre-existing condition, even if people didn’t know they had that condition at the time they signed up.

Fish-Parcham noted the rule change was opposed by almost all healthcare provider and consumer groups.

“Hospitals and clinics are very concerned about the rise in uncompensated care that they might face,” Fish-Parcham said. “People buy these plans and then they don’t cover the person’s hospitalization. That’s a problem both for the consumer and for the hospital.”

She said it will be up to the states to protect consumers from what critics are calling “junk” healthcare plans. New York currently prohibits short-term plans.


About the Author

Steve Lubetkin
Steve Lubetkin is the news director for Steve’s journalism background includes print and broadcast reporting for NJ news organizations. In May 2019, he began anchoring and reporting for the new weekly podcast, "The CRE News Hour," a news and features program focusing on the commercial real estate industry. From 2014 to 2019 he was New Jersey and Philadelphia editor for and filled in covering Chicago/Midwest and Atlanta. He has won numerous awards for his audio and video news reporting from the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for, a public policy news coverage website focused on New Jersey government and industry; and for clients of, a division of The Lubetkin Media Companies LLC. In March 2021, he was elected to the board of directors of the New Jersey Chapter of the Society of Professional Journalists. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at