Supplemental Benefits for Individuals Act of 2025
Summary
The Supplemental Benefits for Individuals Act of 2025 aims to amend the Public Health Service Act to include certain supplemental coverage provided to individual health insurance coverage as an excepted benefit. This means that these supplemental coverages would be treated differently under certain regulations, potentially affecting their availability and cost. The bill was introduced in the House of Representatives by Mr. Balderson and referred to the Committee on Energy and Commerce.
Expected Effects
The primary effect of this bill would be to change the regulatory status of certain supplemental health insurance coverages. By classifying them as 'excepted benefits,' these coverages may be exempt from some of the requirements of the Affordable Care Act (ACA). This could lead to more diverse and potentially lower-cost supplemental options for individuals, but it could also reduce consumer protections.
Potential Benefits
- Potentially lower costs for supplemental health insurance.
- Increased availability of diverse supplemental coverage options.
- Greater flexibility for insurers in designing supplemental plans.
- May encourage more individuals to obtain some form of health coverage.
- Could reduce the burden on comprehensive health insurance plans.
Potential Disadvantages
- Potential reduction in consumer protections for supplemental coverage.
- Possible confusion among consumers regarding the scope and limitations of excepted benefits.
- Risk that some individuals may rely too heavily on supplemental coverage without adequate comprehensive insurance.
- Could lead to adverse selection if healthier individuals opt for supplemental plans, increasing costs for comprehensive plans.
- Uncertainty regarding the long-term impact on the overall health insurance market.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, as it regulates health insurance, which is considered interstate commerce. The act does not appear to infringe upon any specific individual rights or freedoms guaranteed by the Constitution or its amendments. However, the impact on access to healthcare and potential effects on vulnerable populations could raise concerns related to the general welfare clause.
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).