In July, a federal district court judge upheld the Trump administration’s rule expanding availability of short-term, limited duration insurance (short-term plan). Under the rule, short-term plans can be sold for up to 12 months. These products do not have to comply with the Affordable Care Act’s (ACA) consumer protections, allowing insurers to deny coverage to people based on health status and cover far fewer benefits than an ACA-compliant plan, often leaving enrollees with substantial medical bills if they need care. Short-term plans also pose risks to the ACA-compliant individual market by siphoning away healthy people who can pass a health status screening. While the new federal standards promote short-term plans as a long-term coverage option, states can act to protect consumers and their markets by imposing stricter limitations.
With the help of CHIR experts, Community Catalyst has published another resource for state advocates and policymakers: The Advocate’s Guide to Short-Term Limited Duration Insurance. The new resource provides an overview of short-term plans, offers insight on unscrupulous sales practices that leave consumers at risk, and outlines options for regulating short-term plans. In addition to these state opportunities, the guide discusses important considerations for advocates engaged in efforts to protect consumers from inadequate coverage.