Washington, D.C. – U.S. Sen. Jeff Flake (R-AZ) has introduced S. 531, the Removing Limitations on Insurance Effectiveness and Flexibility (ReLIEF) Act. The bill would extend to all individuals impacted by the Affordable Care Act’s individual health insurance mandate the ability to purchase more-affordable catastrophic health insurance plans.

The bill would deem such plans as meeting the minimum essential coverage requirement under the Affordable Care Act (ACA), and would allow health insurance providers to offer these types of plans to everyone, consistent with the flexibility the Obama administration previously provided to those facing policy cancellations. The bill would also make these changes permanent and statutory.

“Relief from the unaffordable cost of Obamacare coverage ought to be available to everyone, not just to a select patchwork of individuals chosen by the president,” said Flake. 

Background: In December 2013, the White House announced that those facing health insurance cancellations due to the ACA would be eligible for a hardship exemption and would be able to enroll in catastrophic coverage. Those facing cancellations would be able to apply for a hardship exemption from the penalty for not having health coverage. On March 5, 2014, the administration extended this exemption through October 1, 2016.

In addition, the announcement stated that if affected individuals “believe that the plan options available in the marketplace…are more expensive” than the insurance plan being cancelled, they would be eligible to purchase catastrophic plans. 

Catastrophic health plans, which generally have lower premiums, but higher deductibles, are allowed to be sold under the ACA only to those under 30 years old, and to those over 30 years old with a hardship exemption. 

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