‘These Plans Aren’t For Everyone’: Administration Defends Short-Term Coverage As Critics Call It Junk Insurance
The administration issued its final rule on the short-term plans on Wednesday, allowing insurers to sell them for 12 months and then renew them for two years. The coverage is cheaper because it doesn't meet the strict requirements instituted by the health law -- such as covering essential benefits. Democrats and other critics aired their concerns about the move putting both consumers and the marketplace at risk.
The New York Times:
‘Short Term’ Health Insurance? Up To 3 Years Under New Trump Policy
The Trump administration issued a final rule on Wednesday that clears the way for the sale of many more health insurance policies that do not comply with the Affordable Care Act and do not have to cover prescription drugs, maternity care or people with pre-existing medical conditions. President Trump has said that he believes that the new “short-term, limited-duration insurance” could help millions of people who do not want or need comprehensive health insurance providing the full range of benefits required by the health law. (Pear, 8/1)
The Washington Post:
Trump Administration Widens Availability Of Skimpy, Short-Term Health Plans
The short-term plans “may not be the right choice for everybody,” Azar said at an afternoon news briefing. But, he said, “we believe strongly in giving people options here.” Azar and other federal health officials predicted short-term, limited-duration plans will appeal mainly to middle-class people who do not qualify for government subsidies for ACA health plans — especially people who are young or healthy. With the law still in place despite Trump’s and congressional Republicans’ hostility toward it, “we are looking to do everything we can to take incremental steps that will make insurance coverage more affordable,” said Jim Parker, director of HHS’s Office of Health Reform. (Goldstein, 8/1)
NPR:
Trump Administration Allows Scaled-Down Health Insurance Plans
The Congressional Budget Office, the nonpartisan research office that estimates the budget effects of policy proposals, gave a larger figure, estimating that about 2 million mostly healthy people will buy short-term plans. This could have the effect of driving premiums slightly higher on the ACA exchanges, because healthier people will leave the market, according to the CBO. (Kodjak, 8/1)
Modern Healthcare:
Trump Administration To Allow Renewable, Short-Term Insurance
Health insurers could start selling short-term plans that last up to a year in as soon as a couple of months. The final rule goes into effect 60 days after it is posted, though state regulators would still need to approve new plans. While the final rule would allow insurers to sell plans that last up to one year and allow those plans to be renewed for up to three years, it does not require renewability. That will be left up to the insurer to decide whether it will allow consumers to renew their coverage without having to re-apply for a plan. (Livingston, 8/1)
The Washington Post:
Consumers Getting More Options For Short-Term Health Plans
Democrats immediately branded Trump’s approach as “junk insurance,” and a major insurer group warned that consumers could potentially be harmed. Other insurers were more neutral, and companies marketing the plans hailed the development. It’s unclear how much mass-market appeal such limited plans will ultimately have. State insurance regulators also have jurisdiction, and many states may move to impose their own restrictions. Federal officials said they anticipate a slow take-up, not sweeping changes. (Alonso-Zaldivar, 8/1)
The Hill:
Trump Expands Non-ObamaCare Plans In Effort To Open Up Cheaper Options
The Blue Cross Blue Shield Association, a health insurer trade group, warned of the effects of the new rules in a statement on Wednesday. Justine Handelman, the association's senior vice president, warned that the new slimmed-down plans have "the potential to harm consumers, both by making comprehensive coverage more expensive and by leaving some consumers unaware of the risks of these policies." (Hellmann, 8/1)
CQ:
Top Health Official Defends Administration's Latest Health Rule
Sen. Bill Cassidy, R-La., noted that states could decide to set more restrictive regulations than the federal standard. Some states already have additional limits on short-term plans and more states could do so in the future. But he agreed with Azar that short-term plans could provide alternative options to people who don’t receive employer-sponsored insurance and don’t qualify for premium tax credits. “Clearly this is a response to the market failure,” he said. “If you’re in the individual market and not getting a subsidy, you can no longer afford insurance." (McIntire, 8/1)
The CT Mirror:
CT Insurance Dept. Mulling Expansion Of 'Short-Term' Plans
The Trump administration on Wednesday issued final rules that would allow states like Connecticut to allow the sale of cheaper, skimpier health care plans that were originally intended for short-term use but would now be available for 364 days, or nearly 12 months, at a time. It’s up to state officials to allow the sale of these short-term plans, which do not have to cover pre-existing conditions or provide the comprehensive coverage the Affordable Care Act requires. (Radelat, 8/1)
The New York Times:
What To Know Before You Buy Short-Term Health Insurance
The Trump administration has just completed rules that will allow people to shop for a new kind of health insurance. So-called short-term plans will be offered for relatively long periods — just under a year at a time, with renewals for up to 36 months — and they will be marketed extensively in most states. They will tend to have substantially lower prices than the insurance people can buy in Obamacare markets, and for some people they may look like a better option. But the plans are cheaper for a reason: They tend to cover fewer medical services than comprehensive insurance, and they will charge higher prices to people with pre-existing health problems, if they’ll cover them at all. (Sanger-Katz, 8/1)
PBS NewsHour:
Trump Lifted Restrictions On ‘Short Term’ Health Insurance Plans. Here’s What That Means For Consumers
Under the short-term plans, an insurance company does not have to accept your application for insurance. If you are accepted but your health status changes (perhaps you receive an unexpected diagnosis or are involved in an accident), an insurance company can charge you a higher premium or drop your coverage. Plans may come with annual or lifetime caps on the amount of coverage an insurer will provide. These plans may be attractive to young, healthy clients, or people who are between jobs. (Santhanam, 8/1)
Chicago Tribune:
Five Things To Know About Short-Term Health Insurance Plans In Illinois
Consumers will soon be able to use short-term health insurance plans longer as an alternative to buying pricier plans on the Obamacare exchange, the Trump administration announced Wednesday. But the plans might not be right for everyone, and they could still be limited in Illinois. Here are five things to know about how the new rule may affect Illinois consumers. (Schencker, 8/1)
Politico:
Trump’s Losing Fight Against Obamacare
President Donald Trump can’t kill Obamacare, no matter how hard he tries. His administration’s latest threat to the law, unveiled Wednesday, expands the availability of short-term health plans that critics deride as “junk” insurance. However, despite the administration’s unrelenting efforts to sideline Obamacare, more insurers are signing up to sell 2019 coverage, and premium increases will be the lowest in years. (Demko and Cancryn, 8/1)
