A coalition of leading insurance companies, including America’s biggest, are suing the Obama administration over the way it plans to manage auto insurance policies in the wake of the nation’s worst auto crash in decades.
In a lawsuit filed Monday, which is expected to go to trial next month, the auto industry groups argue that the Obama Administration has not done enough to address the nation-wide health crisis, particularly for those with pre-existing conditions, who have been hit particularly hard by the epidemic.
The groups are also seeking to require the administration to release a plan for covering people with pre/existing conditions.
The insurers’ lawsuit follows a similar effort by Aon Corp. in 2015 that led to the creation of a group of consumer advocacy groups called the Coalition for Affordable Auto Insurance.
That group, which also includes National Automobile Dealers Association and National Association of Home Health Insurers, filed its complaint with the government in October.
It’s the latest sign that insurers are worried about the potential of a Trump administration that has vowed to crack down on insurance companies and cut off payments to insurers for coverage under the Affordable Care Act.
The auto insurers argue that it would be irresponsible for the administration not to follow through on its promise to help consumers who are struggling to pay for their auto insurance.
And they say the administration should do everything it can to address a number of issues, including offering assistance to insurers who need it and making sure that people with preexisting conditions have access to the benefits of the ACA.
The Obama administration says it is not taking sides in the auto insurance debate and that it has a broad range of health-related assistance programs that are available to people with health issues.
The Trump administration, which took office in January, has been pushing for changes to the ACA, including the expansion of Medicaid, the healthcare program for low-income Americans that the Trump administration has said is essential to preventing a “death spiral” in the U.S. health care system.
The administration has also vowed to overhaul the federal insurance marketplace and has promised to repeal the Affordable Health Care Act and replace it with something more tailored to the needs of low- and moderate-income people.
In response to the lawsuit, the White House said that it welcomes the efforts of the auto insurers and the Coalition, which includes some of the country’s largest insurers.
The administration has “a wide range of programs available to those who need them, and we have been clear that we will continue to do everything we can to make sure that everyone has access to those programs,” White House spokeswoman Heather Nauert said.
“We hope the auto companies, which have been providing valuable services to millions of Americans, will join us in working together to address this issue and make sure people with complex medical conditions get the care they need.”
The Obama Administration’s proposed rules on auto insurance would allow companies to limit coverage to people whose premiums exceed 50 percent of household income.
The proposed rules also would allow insurers to charge people more for certain types of coverage, such as for prescription drugs, dental services and vision care.
The government said it would “implement an enhanced program for health insurance coverage of the most vulnerable individuals who are most vulnerable and whose costs have increased the most since the onset of the pandemic.”
The Department of Health and Human Services said the new rule would “help ensure that Americans have the best options available to them for coverage and help ensure that the most disadvantaged Americans have access.”
But the groups said that under the proposed rules, they would not be able to receive payments for coverage that they have been paying for through their policies.
The proposal also would exempt some individuals from having to pay any out-of-pocket expenses for certain health care services that are currently provided through insurance, such a vision-health plan or the dental care they have, according to the groups.
The rules would also require insurers to cover some out- of-pocket costs for people who have health conditions that are not listed as pre-conditions under the ACA but that may have been exacerbated by the pandemics.
“Our members are at great risk from the pandics and they deserve to be covered under the policies they have now, which they will have to do,” said Cynthia Oster, president and CEO of American Strategic.
“We are asking the Administration to continue its work to ensure the most cost-effective coverage available for the most people.
The proposal does not go far enough.”
The Trump Administration has also said it will require companies to offer a plan that will cover all people who buy auto insurance, regardless of their income, regardless if they have pre-existed conditions and regardless of how much they make.
The White House did not immediately respond to a request for comment.
A federal appeals court ruled in July that the ACA’s mandate that insurers cover people with serious illnesses was a valid federal regulation that applies to people of all income levels, and that insurers can charge people based on the severity of their illness