Today, the North Carolina Senate voted to approve legislation that would exempt self-funded, nonprofit health plans from all state and federal insurance regulation. Under the bill, these plans would be able charge people more based on their health history or age, exclude coverage for essential health services like prescription drugs or hospitalization; and set arbitrary annual or lifetime limits on coverage.
Allowing the sale of unregulated and inadequate health plans risks splitting the insurance market into two. Young and healthy people would pay less for inadequate coverage and older and sicker people, like those with cancer, would pay much more for coverage that meets their needs.
These plans would also be exempt from financial regulatory requirements leaving consumers with no guarantee their health plan could cover their medical costs and no recourse in the event their health plan runs out of money.
A statement from Christine Weason, North Carolina government relations director for the American Cancer Society Cancer Action Network (ACS CAN) follows:
“The bill passed today poses a serious risk for the more than 1.6 million North Carolinians with pre-existing health conditions, including cancer. Allowing plans to cherry pick only the youngest and healthiest individuals will divide the state’s insurance market and leave cancer patients, survivors and those at risk for the disease with few, if any, affordable, health coverage options.
“Cancer patients and survivors would once again face exorbitant premiums or be required to pay so much for coverage that they are unable to afford the care they need.
“Those who do enroll in these plans are likely to find their coverage entirely inadequate should they face an unexpected cancer or other serious diagnosis. Offering these types of plans sets people up for a false sense of security and creates the potential for great harm.
“On behalf of North Carolina cancer patients, survivors and their families we urge the House to reject this legislation and instead come together to find real solutions to our state’s health care challenges.”
American Cancer Society Cancer Action Network (ACS CAN)
ACS CAN, the nonprofit, nonpartisan advocacy affiliate of the American Cancer Society, supports evidence-based policy and legislative solutions designed to eliminate cancer as a major health problem. ACS CAN works to encourage elected officials and candidates to make cancer a top national priority. ACS CAN gives ordinary people extraordinary power to fight cancer with the training and tools they need to make their voices heard. For more information, visit www.fightcancer.org.