Competition and Openness in Markets to Promote Efficiency, Transparency, and Enhanced affordability Act; COMPETE Act
Summary
The COMPETE Act aims to ensure competition in health insurance markets by amending Section 2791(b) of the Public Health Service Act. It focuses on defining and regulating short-term limited duration insurance plans. The bill specifies that these plans should have a contract expiration date of no more than 12 months and may include a renewal guarantee without additional underwriting.
Expected Effects
The act will change the definition of short-term limited duration insurance. This could lead to more availability of these types of plans. It also clarifies renewal conditions, potentially affecting premium pricing and consumer choice.
Potential Benefits
- Potentially lower premiums for some consumers seeking short-term coverage.
- Increased choice of insurance plans, catering to specific needs and budgets.
- Greater flexibility for individuals in transition periods (e.g., between jobs).
- May encourage more competition among health insurance providers.
- Could reduce the number of uninsured individuals by offering more affordable options.
Most Benefited Areas:
Potential Disadvantages
- Short-term plans may not cover pre-existing conditions or essential health benefits.
- Potential for adverse selection, where healthier individuals opt for short-term plans, raising costs for comprehensive plans.
- Limited coverage duration may leave individuals vulnerable to unexpected health issues.
- Renewal guarantees without underwriting could lead to higher premiums in the long run.
- May destabilize the overall health insurance market by drawing individuals away from ACA-compliant plans.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to regulate interstate commerce, as health insurance markets often operate across state lines. Specifically, Article I, Section 8, Clause 3 (the Commerce Clause) grants Congress the authority to regulate commerce among the several states. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).