House Democrats sent letters to 12 insurance companies seeking information about short-term health insurance coverage.
President Donald Trump’s administration last year expanded the availability of short-term, limited-duration health plans. Companies that received letters Wednesday from House Energy and Commerce Committee Chairman Frank Pallone of New Jersey and other committee leaders include Anthem Inc., UnitedHealth Group Inc., Health Insurance Innovations Inc. and closely held Cambia Health Solutions.
Health Insurance Innovations, an insurance brokerage that touts a cloud-based technology platform, saw its shares plunge 17%, giving it a market value of roughly $458 million. Anthem and UnitedHealth, who rank among the largest health insurers in the U.S., were each higher by more than 2% in afternoon trading.
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“Many consumers are being misled to believe that these plans comply with the patient protections of the Affordable Care Act,” Pallone said at a conference of health-insurance plans on Wednesday.
Representatives of the companies couldn’t immediately be reached for comment.
The lawmakers want to know how companies market the short-term plans, what percentage of applicants are denied coverage, and what brokers who sell the insurance are paid. They also asked for plan applications and underwriting documents.