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News
A long-running lawsuit against the Department of Labor could pave the way for a surge in low-cost but skimpy health plans that sidestep ACA consumer protections. The case centers on whether people who download a data-tracking app can be classified as "employees" — unlocking access to employer-style insurance exempt from state oversight. A potential settlement has health policy experts sounding the alarm.
A lawsuit filed in 2019 by Data Marketing Partnership (DMP) against the Department of Labor is drawing intense scrutiny from health policy analysts. At its core, the case asks whether people who download an app that tracks their internet searches — in exchange for access to group health insurance — can legally be classified as employees. If the answer is yes, it could open the door to a wave of employer-style health plans that bypass ACA requirements and state insurance regulations.
Court filings suggest a settlement may be in the works, though details remain unknown. Critics warn that such an outcome could accelerate the spread of so-called "junk plans" — coverage that may leave consumers with massive unpaid bills. The concern is especially acute as ACA marketplace premiums are already surging and enrollment is declining, with healthier individuals increasingly opting out.
Key Takeaways:
Why it matters: If the settlement greenlights DMP's model, it could trigger a proliferation of loosely regulated health plans that attract younger, healthier consumers — leaving sicker, older individuals in ACA markets facing even higher premiums and fewer protections.
