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Ending Patient Runaround Act Aims to Simplify Health Coverage and Lower Costs
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Key points
- Representative Michael Cloud introduced HR 10908 to ban mid-term coverage cuts and require written prior authorization decisions within 30 days.
- The bill incorporates Universal Savings Accounts allowing adults to deposit up to $10,000 tax-free annually for medical or general expenses.
- The proposal expands catastrophic coverage to all ages, sets transparency rules, and imposes financial penalties for patient overbilling.
NewsWK — Representative Michael Cloud publicly announced new healthcare legislation to protect consumers from sudden insurance changes. Introduced in the 119th Congress, HR 10908 creates broad insurance protections for policyholders across the nation.
What does the Ending Patient Runaround Act change for healthcare consumers?
The health insurance reform bill establishes clear consumer protections against sudden mid-term policy cuts. Under the proposed rules, health insurance companies cannot reduce covered services after an individual enrolls in a plan. Insurers also cannot restrict prescription drug coverage tiers during the active policy term. Furthermore, insurance companies must deliver written prior authorization decisions through a secure portal within 30 days.
How does Universal Savings Accounts legislation expand tax-free savings?
The Universal Savings Accounts legislation inside the bill incorporates prior proposals from Representative Diana Harshbarger and Senator Ted Cruz. This policy gives adult United States citizens access to after-tax savings accounts that grow completely tax-free. Eligible individuals can save $10,000 annually, while married couples can deposit up to $20,000 per year. Account holders can spend these tax-free funds on healthcare or general living expenses. Consequently, the bill simplifies rules for Health Savings Accounts, Flexible Spending Accounts, and Health Reimbursement Arrangements.
What other insurance rules would HR 10908 reform?
HR 10908 renames catastrophic health plans as “Basic Plans” and removes all age eligibility limits. Because age restrictions are removed, any adult can purchase basic plans on the Affordable Care Act Exchange. Meanwhile, insurers must assign every enrollee a single customer service representative based in the United States. The designated representative must also maintain proficiency in English.
Additionally, insurers must publish billing codes, reimbursable costs, and covered procedures before enrollment begins. If an insurance company overcharges a patient, the firm must refund more than the original overbilled amount. Finally, insurance plans must reimburse out-of-network medical providers at standard in-network rates for identical care.
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
Related: New Health Coverage Transparency Act Introduced in Congress
Related: Health Savings for Families Act of 2026 Introduces New Benefits
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