The Biden Administration Is Considering Rules to Combat ‘Junk Fees’ in Health Insurance

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According to Michael Boeke, vice president of payment product management at CCC Intelligent Solutions, “payments can look pretty different depending on where a carrier is in terms of their digital journey.”

Carriers that are just beginning their digital revolutions, he claims, are still sending massive volumes of paper checks compared to those that are further along.

“The carriers that still send out a lot of paper checks are still relying on legacy vendors, banks, and payments providers, and they’re likely incurring some hidden costs as a result of their systems not being well connected to the rest of their claims lifecycle,” said Boeke.

Another requirement is that income replacement “fixed indemnity” plan sellers clearly indicate that these plans do not provide comprehensive health insurance.

A third component in the recommendations, according to the information sheet, would require specific disclosures of the limits of plans’ benefits to both new customers and existing users.

These advice, according to the information sheet, are meant to reduce the unpleasant surprises that consumers have had when they realized that their short-term insurance did not cover pre-existing diseases or other treatments that they expected would be covered.