New health plans that track internet activity face federal litigation

The U.S. Department of Labor is fighting a federal judge’s decision that allows two companies to sell health plans to people who agree to internet tracking, according to Bloomberg

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The employee health plans are offered to people who agree to become “limited partners” of a firm called Data Marketing Partnership. Under the agreement, individuals’ internet activity is tracked and sold.

Opponents of the plans argue a federal judge’s decision in Texas to allow the plans could undermine the ACA and state insurance regulations, according to Bloomberg. The new plans wouldn’t be required to offer the ACA’s 10 essential health benefits or insure people with preexisting conditions. However, proponents of the plans argue they don’t violate federal or state laws.

In addition to opposition from the Labor Department, the Blue Cross Blue Shield Association filed a friend-of-the-court brief in support of the department’s appeal.

The case is before the U.S. Court of Appeals for the Fifth Circuit.

Read more here

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