The Availability of Junk Plans Harm Cancer Patients

Access to affordable, comprehensive health care coverage, which Affordable Care Act (ACA) coverage standards help to ensure, is crucial for cancer patients and survivors. Unfortunately, changes to the regulation of insurance have led to the proliferation of “junk plans” that are non-ACA compliant. Junk plans pose a significant risk because, while marketed as cheaper insurance options, the plans fail to offer comprehensive benefits – often excluding coverage of essential health benefits such as emergency services, preventive and wellness services, and prescription drugs – and engage in medical underwriting to deny coverage. Because they are not ACA-compliant, these plans can refuse coverage for pre-existing conditions and arbitrarily revoke coverage, leaving beneficiaries vulnerable to medical and financial harm.

This paper describes the most common types of junk plans, summarizes proposals for federal and state action, and outlines ACS CAN’s policy recommendations.