Short Term, Limited Duration Health Plans

from National Family Voices:

 

"Short-Term, Limited-Duration" Plans

On March 16, 21 patients groups (including Family Voices) wrote to congressional leaders urging that they not include in the omnibus spending bill any provisions to promote so-called "short-term, limited-duration" health plans, as the administration has advocated. These plans would not be required to adhere to the essential-benefits or consumer-protection standards established by the Affordable Care Act (ACA). The administration is proposing a rule that would allow the sale of these plans that could be in effect for up to a year (364 days), and is also pushing for those plans to be automatically renewable. Under current regulations issued by the Obama administration, such plans can be in effect no longer than 90 days. Sale of year-long, renewable plans that do not meet ACA standards would likely create a separate insurance market for healthy individuals who want less expensive health plans, leaving those with pre-existing conditions in a more expensive risk pool. Many health insurance companies also oppose such plans. Senator John Barasso (R-WY) has pushed for the omnibus spending bill to include provisions to allow the sale of such plans, while Senator Tammy Baldwin (D-WI) has urged that the bill prohibit such plans. See GOP May Use Omnibus To Undermine O'Care With A Shadow Insurance Market (Talking Points Memo, 3/15/18). It is not expected that the omnibus will include any provisos on this issue.