PolitiFact Virginia: Rodman's "Dramatic" Pre-Existing Condition Claim Rings False
Speaker: Debra Rodman
Statement: Siobhan Dunnavant “wrote the Republican bill that would let insurance companies deny coverage for pre-existing conditions.”
Date: September 24, 2019
Setting: TV ad
Del. Debra Rodman is telling voters that the quality of their health insurance is at risk if they re-elect Republican state Sen. Siobhan Dunnavant, R-Henrico.
“Sen. Dunnavant wrote the Republican bill that would let insurance companies deny coverage for pre-existing conditions,” Rodman, a Democrat, says in a TV ad launched Sept. 20.
Rodman made the same charge on at least three glossy mailers she sent to voters in late September. One of them particularly got the ire of Dunnavant, a physician. “What do you call a doctor who wrote a bill that would let insurers deny coverage for pre-existing conditions?” it asks. Next to the words is a picture of a duck with the caption “QUACK.”
So we fact-checked Rodman’s claim that Dunnavant wrote a bill that would let insurance companies to “deny coverage for pre-existing conditions.”
Rodman backs her statement by citing a bill Dunnavant introduced in January 2018 that initially would have required health insurance companies doing business with the state government or municipalities to participate in Virginia’s health benefit exchange.
At Dunnavant’s request, the bill was amended. The provision she originally sought was replaced by a measure she said would conditionally change Virginia’s law for short-term health insurance policies.
Short-term plans provide low-cost, limited-duration insurance that doesn’t have to comply with the Affordable Care Act, also called Obamacare. They don’t have to cover pre-existing conditions, prescriptions or maternity care and often come with high deductibles. Critics call them “junk insurance.”
The Obama administration in 2016 issued a rule limiting short-term policies to 90 days to provide stop-gap policies to people who lost their health coverage and were waiting for enrollment periods to begin on the individual insurance market. Virginia’s insurance regulations were adjusted to the federal regulation.
The point here: Dunnavant’s bill didn’t “let” insurance companies sell policies in Virginia that don’t cover pre-existing conditions, as Rodman says. They were already allowed to do that.
Dunnavant is strong opponent of Obamacare and has said her dislike of the law “was the final straw” that motivated her to run for the Senate in 2016. She said “fighting Obamacare would be one of her major goals.
President Donald Trump says the ACA is unconstitutional and should be abolished. In an effort to weaken the law, his administration announced in 2017 that it would change the rules on short-term policies to let them last for 364 days.
Dunnavant’s amended bill - written with Sen. Bryce Reeves, R-Spotsylvania - would have compelled Virginia to conform to the expected new federal regulation. Reeves said the lengthened policies would help Virginians without employer-provided insurance who had seen steep premium increases on their individual, ACA-compliant plans.
In Virginia, the average premium for individual coverage in the ACA market is $796 a month, according to the State Corporation Commission’s Bureau of Insurance. That’s twice the cost in 2016. In contrast, some short-term plans are advertised for $50 a month.
Dunnavant’s amended bill passed the Senate unanimously. Democrats opposed the measure in the House, arguing the extended policies would encourage healthy Virginians to drop their ACA-compliant coverage on the individual market for low-cost, high-risk plans. That, in turn, would drive up costs for comprehensive health insurance.
In August 2018, the White House issued final rules that allow short-term plans to last 364 days and be renewed twice, meaning consumers could be insured by them for three years. In November, the state’s Bureau of Insurance conformed Virginia’s insurance regulations to the federal change without seeking General Assembly approval.
Again: State regulators adapted Virginia’s health insurance regulations to the federal change without General Assembly approval. State law allows the insurance bureau to do that. It’s standard practice, according to Ken Schrad, information director at the State Corporation Commission.
In other words, Dunnavant’s and Reeves’ bill mandating the state to comply with changed federal regulations expanding short-term policies may have been unnecessary.
Del. Terry Kilgore, R-Scott, is chairman of the House Commerce and Labor Committee, which oversees insurance. He said there’s uncertainty about when the state must comply with ACA changes and sometimes legislators like to vote on them to establish a record.
A final point about Rodman’s ad: It suggests any Virginian could be denied coverage for pre-existing conditions when, in fact, the regulation will affect few. About 79 percent of Virginians are insured by ACA-compliant plans - subsidized by their employers or the government - that mandates coverage of pre-existing conditions, according to the SCC.
The remaining 21% percent is the pool most likely to consider short-term term insurance. Are those who sign up being “denied” pre-existing coverage, as Rodman contends, or making a free choice? We’ll leave that call to you.
Rodman claims Dunnavant “wrote the Republican bill that would let insurance companies deny coverage for pre-existing conditions.”
Dunnavant opposes Obamacare. She sponsored an unsuccessful bill in 2018 that would have expanded inexpensive, short-term health insurance policies that don’t have to cover pre-existing conditions and many other medical circumstances. They are exempt from Obamacare standards.
But contrary to Rodman’s claim, Dunnavant’s bill wouldn’t have “let” insurance companies sell short-term plans; they were already permitted to sell 90-day policies in Virginia in accordance with ACA rules. Dunnavant’s bill would have extended the coverage period to comply with expected new federal rules - something the state regulators ended up doing without legislation.
Rodman’s statement also suggests that anyone could have been denied coverage for pre-existing conditions. In fact, 79 percent of Virginians have ACA-compliant insurance, subsidized by their employers or the government, that mandates such coverage.
We rate Rodman’s dramatic claim False.
Debra Rodman, TV ad, Sept. 20, 2019.
Rodman, campaign mailers, Sept 19 and Sept. 26, 2019.
Richmond Times-Dispatch, “Mailer from Democrat Rodman calls Republican Sen. Dunnavant a ‘quack,’” Sept. 20, 2019.
Richmond Times-Dispatch, “12 District Candidate: Siobhan Dunnavant,” May 31, 2015.
Dunnavant for Senate, “Setting the Record Straight: Short-term Health Plans,” September 2019.
Dunnavant for Senate 2016, “Issues,” accessed Sept. 27, 2019.
Legislative Information System, SB844, 2018 session.
Interview and email with Doug Gray, executive director of the Virginia Association of Health Plans, Sept. 26, 2019.
Interview and email with Ken Schrad, director of Information Resources Division at the State Corporation Commission, Sept. 27, 2019.
The New York Times, “‘Short-term’ health insurance? Up to 3 years under new Trump policy,” Aug. 1, 2018.
Interviews and email with Hailey Barringer, Deputy executive director, Virginia Senate Executive Caucus, Sept. 25-30, 2019.
Interview with Molly Banta, Roadman campaign chairman, Sept. 25, 2019.
ez.insure, “Plans from $50.20,” accessed Oct. 27, 2019.
Scott White, Virginia commissioner of insurance, administrative letter, Nov. 1, 2018.
State Corporation Commission Bureau of Insurance, “2020 Individual and Small Group Rates and Market Overview,” Spt. 17, 2019.
Code of Virginia, §38.2-3430.9, accessed Sept. 30, 2019.