Davids Introduces Amendment to Give Expecting Parents Power Over Child’s Health Care Insurance

WASHINGTON, DC - Representative Sharice Davids recently introduced her Empowering Parents’ Healthcare Choices Act as an amendment to U.S. government budget legislation. Her bill,submitted to the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act, is designed to cut insurer red tape, avoid surprise bills, and give parents decision-making power over their infant’s health care — not insurance companies.

“Welcoming a child into your family should be a joyful event, free from undue stress and financial burden at the hands of insurance companies,” said Davids. “This is a simple fix that gives parents power over their baby’s health care coverage, so they can make an informed choice about their family’s future. I’ll continue looking for avenues to get this legislation across the finish line, providing financial relief for countless families in Kansas and across the country.”

Currently, many expecting parents with separate health insurance plans are subject to an obscure and often undisclosed policy known as “the birthday rule.” The birthday rule determines the insurance policy that will cover a new baby simply based on whichever parent’s birthday comes first in the calendar year – regardless of what the parents want. Insurance companies often do not inform parents of this policy, which can result in surprise medical bills for growing families. That’s what happened to the Kjelshus family of Olathe, KS, when they welcomed their daughter Charlie to the world—leaving them with a $270,951 out-of-network hospital billeven though they had planned for Charlie’s birth based on the coverage they expected to use.

The Empowering Parents’ Healthcare Choices Act would give parents 60 days after the birth of their child to choose which insurance policy will cover their new baby. It would also give the Administration authority to instruct insurers on how and when to notify parents of their rights, helping more families avoid frustrating red tape, surprise bills, and insurance policy mazes.

“We thought we had everything prepared for our daughter’s arrival, but the ‘birthday rule’ ended up putting us in an unexpected and financially stressful back-and-forth with insurance companies for over a year,” said Mikkel and Kayla Kjelshus of Olathe, KS. “We are glad that Rep. Davids is bringing attention to this issue, which affects so many families and can put incredible strain on what should be a happy time. Just by giving the power and knowledge to families on their health care decision, this bill would make a big difference in every new parents’ life.”

Davids is a fierce advocate for making health care more affordable and accessible to all Kansans. She supported legislation to protect patients from out-of-network surprise medical bills, which has shielded patients from millions of surprise bills since passage. This law included Davids’ original legislation to improve insurer transparency, helping patients avoid unintentional out-of-network health care visits. Last year, Davids also voted for major legislation that gave Medicare the power to negotiate for lower prescription drug prices, capped insulin costs for Kansans on Medicare at $35 a month, and capped Medicare beneficiaries’ out-of-pocket drug costs at $2,000 per year.